Bank Lenders Delay Collateral Requirements for NRG Energy; Sales of NRG Assets Proceeding On Schedule.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Aug. 20, 2002 NRG Energy NRG Energy, Inc. (NRG) is a wholesale power generation company founded in 1989, which has an ownership interest in 47 power generating facilities around the world. The diverse portfolio of facilities, are primarily in the Northeast, South Central and Western regions of the United , Inc., today announced it had obtained approval from lenders to extend until Sept. 13, 2002, the deadline by which it must post collateral ranging in value from $1.1 billion to $1.3 billion for certain agreements. "This is a significant development in our ongoing efforts to strengthen the finances of NRG NRG Energy NRG NRG Energy, Inc. NRG Natural Resources Group NRG New Radiancy Group NRG Network Referral Group NRG Network Resource Grapher NRG Numerics Rapporteur Group NRG Neuroprosthetics Research Group NRG notional requirements generator and to assure financial markets of our integrity and credibility," said Dick Kelly, NRG president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "This extension gives NRG the time it needs to continue to execute its plan, market certain NRG assets and develop a more permanent arrangement with our lenders." "The collateral waivers provide breathing room to enable us to continue the process of strengthening NRG," Kelly said. NRG sought the extensions in anticipation of cash that is to be generated as part of a financial improvement program for NRG that was announced in July. That program includes reducing capital expenditures by $1 billion, and selling certain NRG operations overseas and in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. to raise an expected $1.4 billion. The asset sales are proceeding on target, with the bulk of sales expected to be completed by year-end 2002. "We are encouraged by both the number and size of the bids," Kelly said. "We are finalizing several asset sales agreements, which we will announce shortly." NRG Energy, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Xcel Energy, develops and operates power generating facilities. NRG's operations include competitive energy production and cogeneration facilities, thermal energy thermal energy Internal energy of a system in thermodynamic equilibrium (see thermodynamics) by virtue of its temperature. A hot body has more thermal energy than a similar cold body, but a large tub of cold water may have more thermal energy than a cup of boiling production and energy resource recovery facilities. This release may include forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements are intended to be identified in this document by the words "anticipate," "estimate," "expect," "projected," "objective," "outlook," "possible," "potential" and similar expressions. Actual results may vary materially. Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions, including their impact on capital expenditures; business conditions in the energy industry; competitive factors; unusual weather; changes in federal or state legislation; regulation; risks associated with the California power market; currency translation and transaction adjustments; the realization of expectations regarding the NRG financial improvement plan and the other risk factors listed from time to time by NRG in reports filed with the Securities and Exchange Commission including NRG Energy's report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for year 2001. |
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