NorthWestern amends plan, boosts holders of Quips, TOPrS estimated recovery to 15.3%

By Jeff Pines

Washington, Aug. 19 - NorthWestern Corp. boosted the estimated recovery for the holders of its junior subordinated deferrable interest debentures and junior subordinated debentures to 15.3% from 3.6%.

The increase came after the company hammered out an agreement with Wilmington Trust Co., the trustee for four series of TOPrS, or junior deferrable interest debentures, Harbert Management Corp. a holder of TOPrS, and the creditors' committee, the company said in its second amended disclosure statement filed with the U.S. Bankruptcy Court for the District of Delaware Thursday.

Wilmington and Harbert filed several motions against NorthWestern over what they believed was a puny recovery considering their class has more than $320 million of claims.

The change lowers the estimated recovery of the unsecured noteholders, which includes holders of medium-term notes, senior notes and debentures, to 68.4% from 73.7%. The bondholders in the unsecured note class have $865 million in claims plus interest.

The new plan calls for them to get 91% of the reorganized company's stock instead of 98%.

The TOPrS holders will get 6.6% of the new common stock plus warrants to buy 10.6% more of the reorganized Sioux Falls, S.D., utility's new stock. Holders of the junior subordinated debentures, or Quips, will get 1.4% of the new stock plus warrants to buy 2.3% more. The Quips holders have $67 million in claims plus interest.

NorthWestern bases the percentages on a share price of $19.77 per share.

A hearing to approve the second amended disclosure statement is scheduled for Aug. 25.

The company filed for bankruptcy on Sept. 14, 2003. Its Chapter 11 case number is 03-12872.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.