NRG subsidiaries join parent's Chapter 11 filing
Minneapolis / St. Paul Business Journal - by Benno Groeneveld Web reporter
Two subsidiaries of NRG Energy Inc. have been brought under their parent company's Chapter 11 bankruptcy filing.
NRG Nelson Turbines and LSP-Nelson filed papers in U.S. Bankruptcy Court in New York Thursday night, joining NRG's bankruptcy, said Meredith Moore, spokeswoman for Minneapolis-based NRG.
The two Nelson companies were set up for a specific project, a 1,168-megawatt natural gas-fired generating plant being built near Chicago.
Moore said that when NRG was growing and acquiring companies, it set up different companies for specific projects, each with their own financing.
When NRG filed for Chapter 11 bankruptcy in New York on May 14, many of those companies were included in that filing, Moore said, but not all of them.
NRG's policy has been "when we can restructure project debt outside the Chapter 11 filing, we will do so," Moore said.
NRG tried to follow that policy with the Nelson companies, but didn't succeed in making separate arrangements with the Nelson creditors. Accordingly, the companies were brought into the original filing through the court action this week, Moore said.
The Nelson companies have about $1.1 billion in debt outstanding.
Xcel Energy Inc. in Minneapolis, NRG's parent, is not involved in any of the Chapter 11 filings. Xcel announced in March that it had reached a tentative agreement with NRG's creditors. That deal included a promise by Xcel to pay $752 million to settle NRG's debts.
bgroeneveld@bizjournals.com | (612) 288-2101
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