Union/Gila River obtain interim approval of $200 million DIP facility

By Ellen Chang

Houston, Feb. 1 - TECO Energy, Inc.'s Union and Gila River power stations were granted interim approval for a $200 million in debtor-in-possession financing to allow for issuance of letters of credit on the same terms and by the same lenders as the pre-bankruptcy letter of credit facility.

They DIP financing will allow Panda Gila up to $85 million under its senior credit facility and $100 million under its credit facility while Union will have a limit of $80 million.

A final hearing is scheduled for March 2.

The Chapter 11 filing was made on Jan. 27 by Union Power Partners, LP, Panda Gila River, LP, Trans-Union Interstate Pipeline, LP and UPP Finance Co., LLC in the U.S. Bankruptcy Court for the District of Arizona. The companies also proposed a joint plan of reorganization.

Confirmation of the reorganization plan is expected some time between March and May.

The Chapter 11 case number is 05-01143.

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