Southern Montana trustee eyes settlement with city, power company

By Lisa Kerner

Charlotte, N.C., May 8 - Southern Montana Electric Generation and Transmission Cooperative, Inc.'s Chapter 11 trustee Lee A. Freeman asked the court to approve a settlement agreement and release entered into with the City of Great Falls and Electric City Power, Inc., according to documents filed Wednesday with the U.S. Bankruptcy Court for the District of Montana.

Freeman has agreed with the City of Great Falls and Electric City Power to settle all matters arising out of or relating to the 2007 wholesale power contract, the water credit agreement, the water service agreement, the state court litigation, the adversary proceeding and the proofs of claim.

In addition, under the agreement the City of Great Falls and Electric City Power will pay the bankruptcy estate $3.25 million of which $2.5 million will be paid upon court approval of the agreement. The remaining $750,000 would be paid on or before Dec. 31, 2013, the filing said.

Southern Montana filed for bankruptcy on Oct. 21, 2011. The Billings, Mont.-based cooperative's Chapter 11 case number is 11-62031.

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