Reliant Resources gets extension on bridge loan

By Sara Rosenberg

New York, Feb. 18 - Reliant Resources Inc. received an extension on the maturity date of its $2.9 billion Orion bridge loan until March 28 from Feb. 19. The extension was requested and granted in order to give banks time to review the company's bank debt restructuring proposal.

In January, the Houston electricity and energy company launched its proposal to restructure $5.9 billion of debt, including the $2.9 billion Orion bridge loan, to a broad group of participant banks. This proposal had already been agreed upon by the three agent banks prior to the solicitation of approval from the larger group of banks. Approval is needed from 100% of the lenders in order for the transaction to be completed.

"Since we launched our debt restructuring proposal, we have received a favorable response from an overwhelming majority of the participants," said Steve Letbetter, chairman and chief executive officer, in a news release. "We view the extension of the February 19 maturity date as an important step in securing approval of our bank debt restructuring proposal."

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