SIOUX FALLS, S.D., March 18 /PRNewswire-FirstCall/ -- NorthWestern
Corporation d/b/a NorthWestern Energy (Nasdaq: NWEC) today announced that a
settlement has been reached that would resolve the litigation related to
Magten Asset Management's ("Magten") claims in NorthWestern's Chapter 11
bankruptcy case.
NorthWestern has filed a motion with the U.S. Bankruptcy Court for the
District of Delaware (the "Motion") for an order authorizing and approving
a settlement agreement by and among, inter alia, Northwestern, Magten, Law
Debenture Trust Company of New York ("Law Debenture") and the Plan
Committee.
The Motion will be heard along with a separate motion to approve an
agreement with the Plan Committee providing, among other things, for the
reimbursement of certain of NorthWestern's litigation defense costs, at a
hearing scheduled for April 9, 2008. If approved, NorthWestern would
receive a reimbursement of previously incurred legal fees of approximately
$3.5 million to $4.0 million.
Under the settlement agreement, if approved, the holders of the QUIPS,
and Magten and Law Debenture, collectively, will receive approximately $23
million. The payment would come from cash principally funded through the
sale of shares of NorthWestern held in the disputed claim reserve
established under NorthWestern's Plan of Reorganization.
It is anticipated that there will be a supplemental distribution from
the disputed claim reserve, as soon as is reasonably practicable after the
approval of the Motion, to all unsecured creditors and debt holders who
have already received an allowed claim distribution of NorthWestern stock
or a cash payment. The amount of the supplemental distribution to each of
these unsecured creditors and debt holders is not presently known.
"We believe this settlement is in the best interest of NorthWestern and
its shareholders as it brings to closure this protracted legal dispute and
resolves the last major claim from the 2003 bankruptcy", said Michael J.
Hanson, President and Chief Executive Officer.
It is anticipated that NorthWestern's bankruptcy case will close by the
end of 2008.
More information on this filing and all proceedings on this matter can
be found at http://www.kccllc.net/northwestern.
About NorthWestern Energy
NorthWestern Energy is one of the largest providers of electricity and
natural gas in the Upper Midwest and Northwest, serving approximately
650,000 customers in Montana, South Dakota and Nebraska. More information
on NorthWestern Energy is available on the Company's Web site at
http://www.northwesternenergy.com.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995". Forward-looking statements often address
our expected future business and financial performance, and often contain
words such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," or "will." These statements are based upon our current
expectations and speak only as of the date hereof. Our actual future
business and financial performance may differ materially and adversely from
those expressed in any forward-looking statements as a result of various
factors and uncertainties, including, but not limited to:
-- our ability to avoid or mitigate adverse rulings or judgments against
us in our pending litigation;
-- unanticipated changes in availability of trade credit, usage, commodity
prices, fuel supply costs or availability due to higher demand,
shortages, weather conditions, transportation problems or other
developments;
-- unscheduled generation outages or forced reductions in output,
maintenance or repairs;
-- adverse changes in general economic and competitive conditions in our
service territories; and
-- potential additional adverse federal, state, or local legislation or
regulation or adverse determinations by regulators.
Our Annual Report on Form 10-K, recent and forthcoming Quarterly
Reports on Form 10-Q, recent Current Reports on Form 8-K and other
Securities and Exchange Commission filings discuss some of the important
risk factors that may affect our business, results of operations and
financial condition.
We undertake no obligation to publicly update or revise any forward-
looking statements, whether as a result of new information, future events
or otherwise.
SOURCE NorthWestern Corporation
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Related links:
http://www.northwesternenergy.com
CONTACT:
Media, Bobbi Schroeppel, 1-866-622-8081,
bobbi.schroeppel@northwestern.com, or Investors, Dan Rausch,
+1-605-978-2902, daniel.rausch@northwestern.com, both of
NorthWestern Corporation
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