Southern settles with noteholders
By Clair Johnson
Southern Montana Electric Generation and Transmission Cooperative announced Wednesday it has settled its disputes with noteholders in its long and complicated bankruptcy.
The settlement will allow Southern to repay a reduced debt amount over four years while maintaining customer electric rates at current levels, said a news release issued by Scott Sweeney, Southern’s interim manager and general manager of Fergus Electric Co-op based in Lewistown.
The agreement also calls for Southern to sell the Highwood Generating Station, a 46-megawatt gas-fired power plant it built and completed in 2011 near Great Falls but seldom uses. Proceeds from the sale will go to the noteholders. The Highwood plant was collateral for the noteholders.
Southern called the settlement a milestone in its exit from bankruptcy.
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