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USGen New England unsecured creditors to be paid in full under liquidation plan
By Ellen Chang
Houston, Feb. 1 - USGen New England, Inc.'s unsecured creditors will be paid in full under the company's plan of liquidation filed Tuesday with the U.S. Bankruptcy Court for the District of Maryland, Greenbelt Division.
Holders of unsecured claims will receive 100% of their claim in cash plus interest at a 4% rate.
National Energy & Gas Transmission, Inc., the shareholder in USGen New England, will retain its equity ownership and will receive whatever is left over after other distributions.
Claims related to Bear Swamp, including Bear Swamp's 7.459% passthrough certificates and 8.270% passthrough certificates, will have a claim of $485 million, of which $72 million will go to shareholders National Energy & Gas.
USGen New England said it expects the bankruptcy court to hold a hearing in March on the disclosure statement for the plan of liquidation.
It anticipates emerging from bankruptcy in June.
Earlier this year, USGen New England closed on its $656 million sale of three fossil fuel plants to Dominion. The company has announced the sale of its remaining assets - hydroelectric generation facilities in New England - to an affiliate of TransCanada Corp. The deal is expected to close during the first half of this year.
Headquartered in Bethesda, Md., USGen New England is a subsidiary of National Energy & Gas Transmission. The companies filed for protection under Chapter 11 on July 8, 2003 in cases that are separately administered. National Energy emerged from bankruptcy last fall and expects to cease operations this year. USGen is still in Chapter 11. Its case number is 03-30459.
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