Louisiana Pellets exclusivity extended amid pellet sale litigation

By Caroline Salls

Pittsburgh, June 17 – Louisiana Pellets, Inc. secured an extension of its exclusive periods for filing and soliciting votes on its reorganization plan, according to an order filed Thursday with the U.S. Bankruptcy Court for the Western District of Louisiana.

The company will have until Sept. 15 to file its plan and Nov. 14 to solicit plan votes, extended from June 17 and Aug. 16, respectively.

Louisiana Pellets said in its motion that its only source of revenue on a post-bankruptcy basis is a pellet sale agreement with E.ON plc UK, with which the company is now engaged in litigation.

The company said the complexity of its case is intensified by the need to restart restore production at its facility and by the substantial dispute with E.ON.

Based in Urania, La., Louisiana Pellets manufactures wood pellets. The company filed for bankruptcy on Feb. 18 under Chapter 11 case number 16-80162.

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