USGen New England emerges from Chapter 11

By Caroline Salls

Pittsburgh, June 2 - USGen New England, Inc. emerged from bankruptcy when its second amended plan of liquidation became effective on Wednesday, according to a filing with the U.S. Bankruptcy Court for the District of Maryland.

The plan was confirmed on May 13.

Under the plan, 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% pass-through certificates and 8.270% pass-through certificates, will have a claim of $485 million, of which $72 million will go to shareholder National Energy & Gas.

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.

Based 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's Chapter 11 case number was 03-30459.

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