NorthWestern to make surplus distribution; creditors to choose from cash or stock

By Caroline Salls

Pittsburgh, July 30 - NorthWestern Corp., which does business as NorthWestern Energy, obtained court approval to make a surplus distribution in cash to the holders of former debt and allowed unsecured claims, instead of a distribution of stock and accruals, from the disputed claims reserve established under the company's confirmed plan of reorganization, according to a company news release.

According to the release, the participating creditors will receive their share of the surplus distribution exclusively in cash unless they elect to receive their share of the surplus distribution in stock and accruals.

NorthWestern said the stock and accruals election must be made by Aug. 22, and creditors who do not make the election will receive their share of the surplus distribution, which will fully distribute all shares and associated dividends and interest from the company's creditors' reserve, in cash.

The company said the creditors' reserve holds 2.36 million shares of its common stock, plus cash dividends and interest on the shares.

NorthWestern said it expects the surplus distribution to be made in late August or September.

Holders of quarterly income preferred securities will not receive any recovery under the surplus distribution but instead will receive their distribution from a separate fund under a global settlement approved on July 14, the release said.

NorthWestern, a Sioux Falls, S.D., provider of electricity and natural gas, emerged from Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware on Nov. 1, 2004.

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