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Co-op members urge liquidation

By Clair Johnson

Billings Gazette

Four rural electrical cooperatives on Friday urged their wholesale power supplier to liquidate assets rather than reorganize as the best way to end a lengthy and complicated bankruptcy.

Members of the Southern Montana Electric Generation and Transmission Cooperative listened as attorneys from Beartooth, Tongue River, Fergus and Mid-Yellowstone co-ops outlined their positions during a Southern board meeting in Billings.

The four co-ops have filed a plan in the bankruptcy case to liquidate Southern. Southern’s noteholders have filed a competing plan to reorganize the wholesaler. The noteholders are Southern’s largest secured creditors.

Although Southern is composed of the four co-ops, which each have two members on the board, Southern has not taken a position on a bankruptcy plan.

After presentations from the co-ops’ attorneys, the Southern board went into a closed session to discuss with the members confidential financial information that has been sealed in the bankruptcy case.

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