Investors

CORRECTING and REPLACING NRG Energy Issues Supplemental Distribution to Creditors

Investors News Release

  View printer-friendly version
<<  Back

CORRECTING and REPLACING NRG Energy Issues Supplemental Distribution to Creditors

March 9, 2006 at 6:22 PM EST

PRINCETON, N.J.--(BUSINESS WIRE)--March 9, 2006--In BW6059 issued March 7, 2006: In the Summary of NRG Energy, Inc. Chapter 11 Disputed Claims Reserve table, the amount for Remaining Assets in Disputed Claims Reserve under Shares of Common Stock shoulf read: 3,220,000, (sted 3,219,000). Also, the amount for Interim Distribution under Shares of Common Stock should read 2,541,000 (sted 2,451,000). In addition, the amount for Assets Retained in Reserve under Cash should read $7,840,000 (sted $6,675,000). Finally, the amount for Assets Retained in Reserve under Shares of Common Stock should read 679,000 (sted 657,000).

    The corrected release reads:

    NRG ENERGY ISSUES SUPPLEMENTAL DISTRIBUTION TO CREDITORS

NRG Energy, Inc. (NYSE:NRG) plans, in accordance with NRG's December 2003 Plan of Reorganization, to make a supplemental distribution from the funded Disputed Claims Reserve (DCR) to its Class 5 and Class 6 unsecured creditors. NRG plans to distribute surplus from the DCR on or before April 1, 2006. The total value of the distribution is approximately $137 million, consisting of approximately $25 million in cash and 2,541,000 shares of NRG common stock.

NRG's Chapter 11 creditors holding allowed claims in Class 5 are expected to receive approximately $22.13 per $1,000.00 of allowed claim, consisting of $4.05 in cash and .41 shares of NRG common stock. Creditors holding Class 6 allowed claims are expected to receive approximately $19.97 per $1,000.00 of allowed claim, consisting of $1.89 in cash and .41 shares of NRG common stock.


    Summary of NRG Energy, Inc. Chapter 11 Disputed Claims Reserve
                         (as of March 7, 2006)

----------------------------------------------------------------------
(All figures are rounded to the          Cash           Shares of NRG
 nearest thousand)                                       Common Stock
----------------------------------------------------------------------
Total Deposits into Disputed Claims
 Reserve                                    $87,153,000     8,765,000
----------------------------------------------------------------------
Payouts on Account of Settled Claims        $54,313,000     5,545,000
----------------------------------------------------------------------
Remaining Assets in Disputed Claims
 Reserve                                    $32,840,000     3,220,000
----------------------------------------------------------------------
Interim Distribution                        $25,000,000     2,541,000
----------------------------------------------------------------------
Assets Retained in Reserve                   $7,840,000       679,000
----------------------------------------------------------------------

The DCR was created under NRG's Plan of Reorganization in December 2003 for the satisfaction of certain general unsecured claims that were disputed as of the effective date of the plan. NRG contributed common stock and cash to an escrow agent to complete the distribution and settlement process, and the assets in the DCR are not included on the Company's balance sheet. Because the common stock issuance in the DCR was recognized on December 6, 2003, distribution of this stock to creditors will not increase the number of common shares outstanding.

NRG still has a number of disputed claims that will be resolved through the process described in the Plan of Reorganization. The total face amount of the remaining claims is approximately $35 million, plus unresolved claims from the 2000-01 California power crisis and certain claims of indefinite amount. We estimate that the actual allowed amount of all remaining claims, once settled, will be less than $35 million. To the extent allowed, these claims will ultimately be paid with the remaining funds in the DCR. The Company believes that the DCR will continue to be funded at a sufficient level to settle all remaining disputed claims after the supplemental distribution. If any excess funds remain in the disputed claims reserve after payment of all obligations, they will be reallocated to the creditor pool and subject to a further supplemental distribution. At this time, NRG cannot estimate the likelihood or timing of any future distributions to creditors from the DCR.

The Company takes no position on the potential income tax consequences of this supplemental distribution and NRG cannot provide tax advice to claim holders.

NRG Energy, Inc. owns and operates a diverse portfolio of power-generating facilities, primarily in Texas and the Northeast, South Central and Western regions of the United States. Its operations include baseload, intermediate, peaking, and cogeneration facilities, thermal energy production and energy resource recovery facilities. NRG also has ownership interests in international generating facilities in Australia and Germany.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions and include the amount of remaining disputed claims and the timing of distributions from the disputed claims reserves, and typically can be identified by the use of words such as "expect," "estimate," "anticipate," "forecast," "plan," "believe" and similar terms. Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially.

NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors that could cause NRG's actual results to differ materially from those contemplated in the forward-looking statements included in this news release should be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the Securities and Exchange Commission at www.sec.gov.

More information on NRG is available at www.nrgenergy.com


    CONTACT: NRG Energy, Inc., Princeton
             Investor Relations:
             Nahla Azmy, 609-524-4526
             or
             Katy Sullivan, 609-524-4527
             or
             Media Inquiries:
             Meredith Moore, 609-524-4522

    SOURCE: NRG Energy, Inc.