Co-op members urge liquidation
By Clair Johnson
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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