La Paloma Generating seeks extension to ‘formulate an exit strategy’

By Caroline Salls

Pittsburgh, March 24 – La Paloma Generating Co., LLC requested an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a motion filed with the U.S. Bankruptcy Court for the District of Delaware.

The company wants to extend its exclusive filing period by 90 days through July 5 and the solicitation period through Sept. 5.

Since its bankruptcy filing less than four months ago, La Paloma said it has been negotiating with stakeholders regarding access to cash and evaluating strategic options and methods for maximizing creditor recoveries.

“The extensions requested by this motion will provide the debtors with the opportunity to continue to work with their stakeholders to formulate an exit strategy for these Chapter 11 cases,” the motion said.

A hearing is scheduled for April 12.

La Paloma is a 1,022 MW combined-cycle gas-fired power plant located in Kern, Calif. The company filed bankruptcy on Dec. 6 under Chapter 11 case number 16-12700.

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