NorthWestern Corporation Reaches Agreement and Files Motion to Approve Settlement of Litigation with Magten Asset Management and
19 März 2008 - 12:16AM
PR Newswire (US)
SIOUX FALLS, S.D., March 18 /PRNewswire-FirstCall/ -- NorthWestern
Corporation d/b/a NorthWestern Energy (NASDAQ:NWEC) today announced
that a settlement has been reached that would resolve the
litigation related to Magten Asset Management's ("Magten") claims
in NorthWestern's Chapter 11 bankruptcy case. NorthWestern has
filed a motion with the U.S. Bankruptcy Court for the District of
Delaware (the "Motion") for an order authorizing and approving a
settlement agreement by and among, inter alia, Northwestern,
Magten, Law Debenture Trust Company of New York ("Law Debenture")
and the Plan Committee. The Motion will be heard along with a
separate motion to approve an agreement with the Plan Committee
providing, among other things, for the reimbursement of certain of
NorthWestern's litigation defense costs, at a hearing scheduled for
April 9, 2008. If approved, NorthWestern would receive a
reimbursement of previously incurred legal fees of approximately
$3.5 million to $4.0 million. Under the settlement agreement, if
approved, the holders of the QUIPS, and Magten and Law Debenture,
collectively, will receive approximately $23 million. The payment
would come from cash principally funded through the sale of shares
of NorthWestern held in the disputed claim reserve established
under NorthWestern's Plan of Reorganization. It is anticipated that
there will be a supplemental distribution from the disputed claim
reserve, as soon as is reasonably practicable after the approval of
the Motion, to all unsecured creditors and debt holders who have
already received an allowed claim distribution of NorthWestern
stock or a cash payment. The amount of the supplemental
distribution to each of these unsecured creditors and debt holders
is not presently known. "We believe this settlement is in the best
interest of NorthWestern and its shareholders as it brings to
closure this protracted legal dispute and resolves the last major
claim from the 2003 bankruptcy", said Michael J. Hanson, President
and Chief Executive Officer. It is anticipated that NorthWestern's
bankruptcy case will close by the end of 2008. More information on
this filing and all proceedings on this matter can be found at
http://www.kccllc.net/northwestern. About NorthWestern Energy
NorthWestern Energy is one of the largest providers of electricity
and natural gas in the Upper Midwest and Northwest, serving
approximately 650,000 customers in Montana, South Dakota and
Nebraska. More information on NorthWestern Energy is available on
the Company's Web site at http://www.northwesternenergy.com/.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This press
release contains forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995". Forward-looking statements often address our
expected future business and financial performance, and often
contain words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," or "will." These statements are based upon our
current expectations and speak only as of the date hereof. Our
actual future business and financial performance may differ
materially and adversely from those expressed in any
forward-looking statements as a result of various factors and
uncertainties, including, but not limited to: -- our ability to
avoid or mitigate adverse rulings or judgments against us in our
pending litigation; -- unanticipated changes in availability of
trade credit, usage, commodity prices, fuel supply costs or
availability due to higher demand, shortages, weather conditions,
transportation problems or other developments; -- unscheduled
generation outages or forced reductions in output, maintenance or
repairs; -- adverse changes in general economic and competitive
conditions in our service territories; and -- potential additional
adverse federal, state, or local legislation or regulation or
adverse determinations by regulators. Our Annual Report on Form
10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent
Current Reports on Form 8-K and other Securities and Exchange
Commission filings discuss some of the important risk factors that
may affect our business, results of operations and financial
condition. We undertake no obligation to publicly update or revise
any forward- looking statements, whether as a result of new
information, future events or otherwise. DATASOURCE: NorthWestern
Corporation CONTACT: Media, Bobbi Schroeppel, 1-866-622-8081, , or
Investors, Dan Rausch, +1-605-978-2902, , both of NorthWestern
Corporation Web site: http://www.northwesternenergy.com/
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