Reliant Energy Channelview files Chapter 11 bankruptcy

By Caroline Salls

Pittsburgh, Aug. 20 - Reliant Energy Channelview LP filed Chapter 11 bankruptcy Monday in the U.S. Bankruptcy Court for the District of Delaware.

The filing also included wholly owned subsidiaries Reliant Energy Channelview (Texas) LLC, Reliant Energy Channelview (Delaware) LLC and Reliant Energy Services Channelview LLC.

According to an 8-K filed with the Securities and Exchange Commission, Reliant expects to continue to explore strategic alternatives in connection with the subsidiaries, including selling its equity interests or refinancing all or a portion of their debt.

As of July 31, Reliant's net investment in these entities was about $70 million.

Reliant Energy Channelview listed more than $100 million in both assets and debt, and, according to a 10-Q filed with the SEC, parent company Reliant Energy Inc. had $2.825 billion in assets and $2.475 billion in debt as of June 30.

In the 10-Q, Reliant Energy Inc. said it completed a refinancing in June, including downsizing its senior secured revolving credit facility to $500 million from $700 million and extending the maturity to 2012, as well as downsizing its senior secured letter-of-credit facility to $250 million from $300 million and extending the maturity on that facility to 2014 from 2010.

The company also issued $575 million in 7 5/8% senior unsecured notes due 2014, $725 million in 7 7/8% senior unsecured notes due 2017 and repaid its $521 million of 9¼% senior secured notes due 2010, its $537 million of 9½% senior secured notes due 2013 and its $400 million senior secured term loan due 2010.

Reliant Energy Channelview's largest unsecured creditors include:

• Equistar Chemicals, Houston, with a $10 million litigation settlement claim;

• Siemens Power Generation, Inc., Palatine, Ill., with a $3.72 million trade claim;

• Sheldon I.S.D. Tax Office, Houston, with a $1.99 million property tax claim; and

• Harris County Tax Assessor-Collector, Houston, with a $1.06 million property tax claim.

Houston-based Reliant Energy provides electricity and energy services. Its Chapter 11 case number is 07-11160.

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