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Clarification: Sale of Highwood Generating Station

By Arleen Boyd

Due Diligence/Risk Management Committee Chair

Subject: Southern Montana Electric Co-op and Selling HGS

In June 2014, the U.S. bankruptcy Court approved a reorganization plan for Southern and creation of a liquidation trust to sell the assets of the Highwood Generating Station (HGS). 

At any time HGS could be sold. Under the reorganization plan, Southern remained responsible for paying its debt to the HGS noteholders. The trust assumed an entirely separate financial obligation to maintain and sell HGS for the noteholders.  When the plant sells—as an operating resource to generate electricity or for sale of its dismantled assets—the noteholders will receive the proceeds and the bankruptcy will be one step closer to wrapping up.  Southern continues to estimate full payment of its remaining debt to the HGS noteholders by the end of 2016 and has expressed intent to close when the debt is paid.

[Note: See Southern Bankruptcy or News Archives at for additional details on the history of the bankruptcy.]