NorthWestern emerges from Chapter 11

By Jeff Pines

Washington, Nov. 1 - NorthWestern Corp. said it emerged from bankruptcy Monday.

"Today, we are beginning a new phase as a focused electric and natural gas utility with a solid capital structure, greatly reduced debt and improved operational efficiency. We are excited now to turn our full attention to growing our utility business in a smart way and seeking new and innovative ways to continue to improve reliability and service to our customers," said Gary Drook, NorthWestern's president and chief executive officer, in a news release.

The Chapter 11 reorganization cut the Sioux Falls, S.D., utility's debt load to about $850 million from its pre-Chapter 11 level of $2.2 billion.

The company will distribute 35.5 million new common shares to its creditors.

The holders of the company's senior unsecured notes will receive 28.25 million shares. Holders of its trust originated preferred securities will get nearly 2.3 million shares and warrants to buy 4.37 million shares. Holders of the quarterly income preferred securities may choose from either receiving a share of 505,591 shares or they can continue their lawsuit against the company. Another 4.41 million shares are being held until the claims of two classes of creditors are resolved.

The company's first mortgage bonds, pollution control bonds, and gas transition bonds were reinstated.

NorthWestern's old common stock was cancelled Monday.

NorthWestern filed for bankruptcy on Sept. 14, 2003 with the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 03-12872.

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