$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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.