USGen New England disclosure statement approved

By Ellen Chang

Houston, March 24 - USGen New England, Inc.'s disclosure statement for its plan of liquidation was approved Thursday by the U.S. Bankruptcy Court for the District of Maryland.

Votes are due by May 2 and the court fixed a confirmation hearing for May 12.

Under the plan, unsecured creditors will be paid in full, receiving 100% of their claim in cash plus interest at 4%.

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.

Creditors of 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 of National Energy & Gas.

USGen New England said 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 03-30465.

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