Refinancing Approved For Energy Wholesaler

Law360, New York (February 14, 2007, 12:00 AM EST) -- A U.S. bankruptcy judge has authorized Magnolia Energy LP to seek out refinancing to dismiss its Chapter 11 case.

Judge Mary F. Walrath signed an order Monday authorizing the electric power wholesaler to refinance its $427 million debt.

"Continued restructuring in Chapter 11 would lead to additional expense and delay and the outcome of such a process is uncertain," Magnolia said. “In contrast, entering into the refinance transaction will provide the debtors with funds to satisfy all valid prepetition claims (excluding intercompany loans) and expenses of...
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