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Published on 2/20/2015 in the Prospect News Distressed Debt Daily.

Longview Power wins OK of $22 million plant rehabilitation agreement

By Caroline Salls

Pittsburgh, Feb. 20 – Longview Power, LLC obtained court approval to enter into a $22 million plant rehabilitation agreement with Southern Environment, Inc., according to an order filed Thursday 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. Because of its size, the filter often succumbs to elevated pressure loss, forcing Longview to operate at less-than-maximum capacity, the motion said.

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

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

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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