Southern Montana trustee wins OK of deal with city and power company

By Caroline Salls

Pittsburgh, May 29 - Southern Montana Electric Generation and Transmission Cooperative, Inc.'s Chapter 11 trustee Lee A. Freeman received court approval of a settlement agreement and release entered into with the City of Great Falls and Electric City Power, Inc., according a Wednesday filing with the U.S. Bankruptcy Court for the District of Montana.

Specifically, Freeman agreed with the City of Great Falls and Electric City Power to settle all matters arising out of or relating to a 2007 wholesale power contract, a water credit agreement, a water service agreement, state court litigation, an adversary proceeding and proofs of claim.

Under the agreement the City of Great Falls and Electric City Power will pay the bankruptcy estate $3.25 million, of which $2.5 million will be paid upon court approval of the agreement.

The remaining $750,000 will be paid by Dec. 31, 2013, the motion said.

Southern Montana filed for bankruptcy on Oct. 21, 2011. The Billings, Mont.-based cooperative's Chapter 11 case number is 11-62031.

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