Insurers Settle With LSP Energy For $7M Over Turbine Failure

Law360, Wilmington (August 20, 2012, 7:09 PM EDT) -- A host of insurers agreed Monday to fork over $7 million to LSP Energy LP to settle a dispute over coverage for a mechanical failure that helped tip the power plant operator into bankruptcy.

Having already shelled out $17.8 million under an insurance policy, insurers led by Great Lakes Reinsurance (UK) PLC agreed to pay $7 million more for repairs and lost revenues resulting from a turbine failure at LSP’s plant in Batesville, Miss., according to a settlement motion filed in Delaware bankruptcy court.

The turbine...
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