La Paloma

By Ken W. Irvin and David E. Kronenberg Sidley Austin, LLP In one of the first decisions of its kind, the Bankruptcy Court for the District of Delaware held in In re La Paloma Generating Company, LLC that a power plant can be sold under Section 363 of the bankruptcy code free and clear of […]

The owner of a merchant 1,022-MW combined cycle natural gas–fired power plant in California has filed for bankruptcy protection, citing regulatory policies and market forces that have depressed revenues. La Paloma Generating Co. on December 6 filed for U.S. Chapter 11 bankruptcy, blaming a debt of $524 million that it racked up even though its four-unit […]