Southern Montana Electric trustee seeks cash collateral use extension

By Caroline Salls

Pittsburgh, Oct. 10 - Southern Montana Electric Generation and Transmission Cooperative, Inc.'s Chapter 11 trustee requested court approval of a stipulation that extends the company's cash collateral use to Jan. 31 from Oct. 31, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Montana.

Without the cash collateral use, Chapter 11 trustee Lee A. Freeman said he will not have enough liquidity to be able to continue to operate Southern Montana's business and move forward with reorganization efforts.

The parties to the stipulation include the trustee, indenture trustee U.S. Bank NA, Prudential Insurance Co. of America, Universal Prudential Arizona Reinsurance Co., Forethought Life Insurance Co. and Modern Woodman of America.

Southern Montana filed for bankruptcy on Oct. 21, 2011 in the U.S. Bankruptcy Court for the District of Montana. The Billings, Mont.-based cooperative's Chapter 11 case number is 11-62031.

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