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

By Caroline Salls

Pittsburgh, April 11 – La Paloma Generating Co., LLC received an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to an order filed April 10 with the U.S. Bankruptcy Court for the District of Delaware.

The company’s exclusive filing period was extended through June 7 and the solicitation period through Aug. 7.

Since its bankruptcy filing, 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.

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

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