A bankruptcy judge has denied requests by creditors to liquidate the assets of Southern Montana Electric Generation and Transmission Cooperative.
The Billings Gazette reports U.S. Bankruptcy Judge Ralph Kirscher ruled Wednesday that the trustee for the wholesale power supplier has shown "a likelihood" of proposing a reorganization plan.
An unsecured creditors committee and some of Southern's member cooperatives argued on July 31 that SME should be liquidated in light of the departure of two co-ops and their customers.
Kirscher ruled the committee didn't produce any evidence that a loss of part of the co-op's revenue stream has any impact on its future viability.
Trustee Lee Freeman said SME has had a positive cash flow since February 2012 after he rejected a contract with PPL Montana and obtained power for about half the price.