La Paloma secures plan extension with termination request condition

By Caroline Salls

Pittsburgh, July 26 – 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 Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The company’s exclusive filing period was extended by 60 days through Aug. 7 and the solicitation period through Oct. 6.

Since its bankruptcy filing, La Paloma said it has negotiated several financing orders, held talks with key stakeholders regarding potential plan structures and worked to monetize assets and restructure important vendor and contractual relationships.

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

Despite the extension, Wednesday’s order stated that any creditor or creditor group could file a motion seeking termination of La Paloma’s exclusivity on shortened 10-day notice if they deem any plan filed by the company to be unacceptable.

La Paloma is a 1,022 MW combined-cycle gas-fired power plant located in Kern, Calif. The company filed bankruptcy on Dec. 6, 2016 under Chapter 11 case number 16-12700.

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