LSP Energy Settles With BNY Mellon Over $80M Bond Penalty

Law360, Wilmington (July 11, 2012, 5:07 PM EDT) -- Bankrupt power plant operator LSP Energy asked a Delaware judge Tuesday to approve a settlement with Bank of New York Mellon Corp. and LSP bondholders resolving a dispute over an $80 million penalty the bank insisted is due on the company's bonds.

LSP and its subsidiaries sought Chapter 11 protection in February to facilitate an asset sale after mechanical failures at its Mississippi plant and the resulting power outages burdened the company with $19 million in repair costs and lost revenues.

BNY Mellon, the indenture trustee...
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