Coal Plant Operator Can Use Cash Collateral To Fund Ch. 11

Law360, Wilmington (September 3, 2013, 7:55 PM EDT) -- A Delaware bankruptcy judge ruled Tuesday that coal plant operator Longview Power LLC can use cash collateral to fund its case for now, but stopped short of allowing the debtor to draw on $59 million in disputed letters of credit without further permission from the court.

U.S. Bankruptcy Judge Brendan L. Shannon said he was struggling with the idea of approving a cash collateral motion that authorized Longview to draw on the letters of credit, while the question of who owns them was being disputed by...
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