LSP Energy Sues BNY Mellon To Skirt $80M Bond Penalty

Law360, Wilmington (April 25, 2012, 8:17 PM EDT) -- LSP Energy LP sued Bank of New York Mellon Corp. in Delaware bankruptcy court on Tuesday to dodge an $80 million penalty the bank insists is due on the troubled power plant operator's bonds.

BNY Mellon, the indenture trustee for $211 million of outstanding LSP bonds, wants to tack on the additional $80 million "make-whole premium" to the bonds because LSP is planning to repay the debt prior to maturity, according to an adversary complaint filed by LSP.

But LSP argues in the suit that its...
To view the full article, register now.