Southern Montana Electric stipulation extends use of cash collateral

By Kali Hays

New York, Feb. 28 - A court approved a further extension of Southern Montana Electric Generation and Transmission Cooperative, Inc.'s use of cash collateral, according to a Friday filing with the U.S. Bankruptcy Court for the District of Montana.

The court approved the extension because the company "continues to have an immediate and critical need to use the cash collateral to operate the business and potentially effectuate a reorganization of the business," the filing stated.

The extension is approved through May 1 based on a stipulation from December modifying the final order and extending the possibility of cash collateral use beyond the termination date.

This is the fifth extension of cash collateral use for the company. Its first extension was approved in October 2012.

Southern Montana filed for bankruptcy on Oct. 21, 2011. The Billings, Mont.-based cooperative's Chapter 11 case number is 11-62031.

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