$20M Panda Temple DIP Short-Circuited By Court, Creditor

Law360, Wilmington (April 20, 2017, 7:15 PM EDT) -- A bankrupt Texas power plant’s $20 million debtor-in-possession loan plan got short-circuited Thursday, after close questioning by a Delaware bankruptcy judge and an accelerated, $5.7 million revenue hedge payment by an investor wary of DIP lender restrictions.

Judge Laurie Selber Silverstein approved only $1.6 million of the originally requested $10 million interim draw on the DIP loan that secured lenders offered to Panda Temple Power LLC, which operates a 758-megawatt natural-gas-fired plant between Dallas and Austin.

DIP budget challenges by Judge Silverstein and the Office of...
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