LSP Energy Ch. 11 Hits Roadblocks At Outset

Law360, Wilmington (February 13, 2012, 6:59 PM EST) -- Power plant operator LSP Energy LP met resistance at the outset of its Delaware bankruptcy case Monday, with a large bondholder claiming the company’s debtor-in-possession loan is unnecessary and customer J. Aron & Co. threatening to terminate a major contract.

LSP filed for court protection Friday to facilitate the sale of its assets — primarily a natural gas power plant in Batesville, Miss. — after mechanical failures and resulting power outages burdened the company with $19 million in repair costs and lost revenues.

But J. Aron...
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