Chap 11 Filing

Discussion in 'Stocks' started by Comanche, Aug 20, 2007.

  1. RRI (reliant energy), had several subs that filed today. Wonder if this will spill over into the stock value?
  2. found this at yahoo.

    Looks like they could take a hit on earnings from this.

    I bot puts, see how it plays out.

    DJ Reliant Energy Units File For Ch 11 Bankruptcy Protection

    By Marie Beaudette

    Reliant Energy Inc.'s (RRI) Channelview, Texas, power plant project filed for Chapter 11 bankruptcy protection in Delaware Monday.

    In a Securities and Exchange Commission filing Monday, Reliant Energy said it continues explore "strategic alternatives" with respect to its interests in the Channelview units, which operate a combined cycle, co-generation power plant.

    Reliant, which has invested a net $70 million in the project, said the bankruptcy filing wouldn't cause the parent company to default on its own debt. Houston-based Reliant provides electricity to more than 1.9 million retail and wholesale customers in Texas, Pennsylvania, New Jersey and Maryland.

    The Channelview units - Reliant Energy Channelview LP, Reliant Energy Channelview (Texas) LLC, Reliant Energy Channelview (Delaware) LLC and Reliant Energy Services Channelview LLC - listed assets and liabilities of more than $100 million each in their Chapter 11 filings with the U.S. Bankruptcy Court in Wilmington.

    In its 2006 annual report, Reliant said Channelview had about $368 million in assets and $342 million in debt.

    Reliant and Equistar Chemicals LP in 2000 began construction on the clean-energy plant, designed to provide up to 800 megawatts of generating capacity to Equistar's Channelview chemical manufacturing facility. The excess energy was to be sold to Texas electricity customers, according to a 2000 press release.

    Reliant earlier this year said it was considering selling Channelview or placing it in bankruptcy.

    Monday's bankruptcy filing listed Equistar, a major producer of petrochemicals, as the Channelview units' largest unsecured creditor, owed $10 million. Equistar is a unit of chemical company Lyondell Chemical Co. (LYO).

    The bankruptcy case will be handled by Richards, Layton & Finger. Bankruptcy Judge Mary F. Walrath has been assigned to the case.

    -Marie Beaudette, Dow Jones Newswires; 202-862-1354;