Southaven Power creditor's request for unsecured creditors committee denied

By Caroline Salls

Pittsburgh, Sept. 22 - Southaven Power, LLC unsecured creditor Erie Power Technologies, Inc.'s request for appointment of an official committee of unsecured creditors was denied Wednesday by the U.S. Bankruptcy Court for the Western District of North Carolina on the basis that it would be "essentially a committee of one."

Erie Power, which has a claim of $2.11 million again Southaven, said in its motion that a committee is needed to ensure the unsecured creditors are heard, even though the company has a "relatively small" amount of general unsecured debt.

Erie noted that the administrator had previously said a committee would not be formed because only Erie and Centro, Inc., which has a $1,600 unsecured claim, are interested in participating.

But Erie Power said the bankruptcy code does not set a minimum size for a committee.

Southaven Power, a Southaven, Miss., energy and transportation company, filed for bankruptcy on May 20. Its Chapter 11 case number is 05-32141.

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