Seeking Alpha Profile| Send Message| ( followers)    Entergy
(ticker: ETR) had its New Orleans business unit (Entergy New
Orleans) declare for Chapter 11 bankruptcy protection, writes
utility analyst Sandy Cohen. The move allows Entergy New Orleans
to borrow money from its parent, and more importantly, to allow
its parent (NYSE:ETR) become a "debtor in possession" lender, a
designation that under bankruptcy rules allows ETR to get 1st
priority for getting repaid (and therefore getting its money
back) as the company comes out of bankruptcy.  The following
article has a good explanation of the issue and news: Yahoo
Finance and AP Article on Entergy New Orleans Bankruptcy Filing.
This filing is more of a technical filing, and a pre-emptive
filing, to allow ETR (the parent) to safely fund the $400-$500
million its New Orleans subsidiary is going to require to make
the necessary recontruction in New Orleans from Hurrican
Katrina. Currently, Entergy New Orleans has essentially zero
revenue, and its cash reserves w