Judge Denies Electric Coop’s request to leave SME

BILLINGS, Mont. (AP) — A judge has denied a power cooperative's request to resume its fight to leave a bankrupt wholesale supplier.

U.S. Bankruptcy Judge Ralph Kirscher on Tuesday ruled against Yellowstone Valley Electric Cooperative's on its claims against the Southern Montana Electric Generation and Transmission and Cooperative.

Kirscher says the request to leave Southern would interfere with the trustee's efforts to reorganize the bankrupt wholesale provider.

The Billings Gazette reports the judge said YVEC could renew its request if the trustee is unable to propose a reorganization plan within a reasonable amount of time or if Southern's case is converted to a liquidation.

YVEC sued Southern in 2008 in state court, alleging it breached its wholesale power contract.

Before the trial, Southern filed for bankruptcy, effectively halting the state case.