Bloomberg News

Reliant Energy Unit Asks for More Time to File Plan

August 20, 2008

Reliant Energy Inc. affiliates that own the 830-megawatt Channelview power plant near Houston asked a bankruptcy judge for the fifth time to extend the deadline to file their liquidation plan.

Reliant Energy Channelview LP and three other Reliant units are asking for a 20-day extension through Sept. 8 to allow them time to ``negotiate, formulate and build consensus around a Chapter 11 plan of liquidation,'' according to court papers filed yesterday in U.S. Bankruptcy Court in Wilmington, Delaware.

Bankruptcy Judge Mary Walrath on July 3 granted Reliant's fourth extension request to bar the filing of a competing plan. The extension ended yesterday.

If the judge rejects the request and an alternative plan is proposed, ``the mere existence of one or more competing plans, however untenable and problematic, would unnecessarily complicate what the debtors hope will turn out to be a successful and prompt conclusion of these Chapter 11 cases,'' Reliant said in court papers.

The bankruptcy judge in June approved the sale of the Channelview power plant for $500 million to GIM Channelview Cogeneration LLC, a unit of Global Infrastructure Management LLC. The sale closed July 1.

Reliant Energy Channelview listed assets and debt of more than $100 million each in its Aug. 20, 2007, bankruptcy filing. Reliant Energy, the parent company, isn't in bankruptcy.

The case is Reliant Energy Channelview LP, 07-11160, U.S. Bankruptcy Court for the District of Delaware (Wilmington).

To contact the reporter on this story: Dawn McCarty in Wilmington, Delaware, at dmccarty@bloomberg.net.

To contact the editors responsible for this story: Patrick Oster at poster@bloomberg.net; Tony Cox at acox3@bloomberg.net.


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