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Published on 2/9/2015 in the Prospect News Distressed Debt Daily.

Longview Power eyes approval of $22 million power plant rehabilitation

By Kali Hays

New York, Feb. 9 – Longview Power, LLC is seeking authorization to enter into a $22 million plant rehabilitation agreement with Southern Environment, Inc. (SEI), according to a Feb. 6 motion with the U.S. Bankruptcy Court for the District of Delaware.

The agreement pertains to Longview’s supercritical coal-fired power generation facility located in Maidsville, W.Va., which uses a pulse jet fabric filter required to control air pollution. Due to its size, the filter often succumbs to elevated pressure loss, forcing Longview to operate at less-than-maximum capacity.

In an effort to expand the capabilities of the filter and its plant, Longview agreed to pay SEI $22 million to construct, deliver, and install new compartments to the fabric filter over a period of about seven months.

Longview said that the proposed agreement will allow its power facility “to finally operate at full capacity on a consistent basis while remaining in compliance with applicable environmental regulations.”

A hearing to consider the agreement is set for Feb. 18.

Longview, an integrated power generation enterprise based in Maidsville, W.Va., filed for bankruptcy on Aug. 30, 2013. The Chapter 11 case number is 13-12211.


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