NorthWestern reorganization plan approved by court

New York, Oct. 8 - NorthWestern Corp. said it obtained an oral ruling confirming its plan of reorganization from the U.S. Bankruptcy Court for the District of Delaware.

The Sioux Falls, S.D., utility said it expects to emerge from Chapter 11 in the "next several weeks."

On emergence, NorthWestern will have $900 million of debt, down $1.3 billion from $2.2 billion as of Dec. 31, 2003.

The company will have an enterprise value of about $1.5 billion and an equity value of approximately $710 million.

Holders of NorthWestern's senior unsecured notes and general unsecured claims over $20,000 will receive 92% of the reorganized company's common stock.

Holders of NorthWestern's Trust Originated Preferred Securities and other subordinated creditors will be eligible to receive 8% of the reorganized company's common stock and warrants for an additional 13% of the common stock.

Unsecured convenience claims of $20,000 or less will be paid in full in cash.

NorthWestern's secured bonds, including its first mortgage, pollution control and gas transition bonds, will not be impaired and will be reinstated.

Environmental claims will not be impaired and will be satisfied in full.

The existing common stock will be cancelled and holders will receive nothing.

NorthWestern said its reorganization plan anticipates that the new board of directors will consider paying a dividend on the new common stock.

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

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