Longview Power request to extend exclusive periods draws objection

By Kali Hays

New York, March 26 - Longview Power, LLC's request for a second extension of its exclusive plan of reorganization filing and acceptance periods drew an objection from Kvaerner North America Construction Inc., according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Kvaerner objected to the extension claiming "it is at odds with the debtors' insistence that these cases must be resolved through their disputed mechanics lien claims resolution procedure under a highly expedited - yet continually adjourned - time table," according to the filing.

As previously reported, an approved settlement agreement between Longview and Foster Wheeler North America Corp. resolving claims over a problematic boiler has been appealed by Kvaerner, who claims it was not provided with documents demonstrating the settlement was reasonable.

Kvaerner further objected to the extension, asserting "the plan filed by the debtors has proved unworkable" and said that "the court should deny the second exclusivity motion and allow other parties to propose plans of reorganization, unless the debtors are sincere about a new direction," the filing stated.

A hearing is scheduled for April 28.

Longview, an integrated power generation enterprise based in Maidsville, W.Va., filed for bankruptcy on Aug. 30. The Chapter 11 case number is 13-12211.

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