Printer Friendly

EL PASO ELECTRIC BANKRUPTCY LOOMS OVER NEGOTIATIONS, FITCH SAYS -- FITCH FINANCIAL WIRE --

 EL PASO ELECTRIC BANKRUPTCY LOOMS OVER NEGOTIATIONS, FITCH SAYS
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Dec. 2 /PRNewswire/ -- El Paso Electric Co.'s (ELPA) future depends on negotiations with creditors which could cause the bankruptcy of the utility before its restructuring plan is in place, Fitch says. ELPA's "BB+" senior debt and "CC" preferred stock remain on FitchAlert negative, where it was placed on Oct. 31 reflecting its uncertain potential for a turnaround.
 ELPA is working to extend or retire a $5.7 million credit facility for its independent fuel trust due and owing today and to obtain a waiver from the owner/participant in the sale/leaseback of Palo Verde nuclear unit 2. A $31 million renewal letter of credit supporting this transaction was due yesterday. Other letter of credit renewals for Palo Verde unit 2 and 3 sale/leaseback are required later this month and are part of the restructuring. The aggregate amount for all letters of credit on behalf of owner/participants is $211.8 million. The utility's lenders agreed to extend the termination date of a $150 million revolving credit agreement to Dec. 16 from Nov. 30.
 ELPA said it expects its restructuring plan to be concluded by the middle of December. If the letters of credit are not drawn upon by their issuers and the sale/leaseback waiver is obtained, ELPA says it would be able to meet its cash obligations through the expected date of its restructuring.
 An important part of the restructuring's success will be the outcome of ELPA's request that the Public Utility Commission of Texas (PUC) reconsider a recent rate decision. The PUC granted a $52 million rate increase granted on Nov. 11 while ELPA had originally requested a $131 million rate increase. The hike would have provided cash to support the company's debt obligations and provide earnings for new financings. The rate decision may also force ELPA to take a $46.1 million pre-tax writeoff for Palo Verde units 1 and 2 phase-in plan deferrals through June 30, 1991.
 -0- 12/2/91
 /CONTACT: Anne F. Faber of Fitch, 212-908-0566/
 (ELPA) CO: El Paso Electric Co. ST: New York IN: UTI SU: RTG


GK -- NY062 -- 8446 12/02/91 15:01 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 2, 1991
Words:371
Previous Article:BOEING TO OFFER AWACS ON ITS MODEL 767 AIRCRAFT
Next Article:WEST ONE BANCORP ACQUIRES WASHINGTON FEDERAL SAVINGS BANK
Topics:


Related Articles
EL PASO ELECTRIC LOWERED TO 'B' BY FITCH AS BANKRUPTCY LOOMS -- FITCH FINANCIAL WIRE --
BANKRUPT EL PASO ELECTRIC BONDS CUT TO 'DDD' BY FITCH -- FITCH FINANCIAL WIRE --
MMWEC POWER SUPPLY SYSTEM REVENUE BONDS RATED 'BBB+' BY FITCH -- FITCH FINANCIAL WIRE --
EL PASO ELECTRIC COMPANY RATING DOWNGRADE BY DUFF & PHELPS
MUSCATINE (IA) ELECTRIC REVENUE REFUNDING BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
HAWAIIAN ELECTRIC LARGELY UNTOUCHED BY HURRICANE, FITCH SAYS -- FITCH FINANCIAL WIRE --
OGLETHORPE POWER CORP. (GA.) PCR BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
NASDAQ REMOVES EPE STOCK FROM NASDAQ NATIONAL MARKET
EPE COMMON STOCK NOW TRADED ON NASD'S OTC BULLETIN BOARD
FITCH RATES POST-BANKRUPTCY EL PASO ELECTRIC CO. BONDS 'BB' -- FITCH FINANCIAL WIRE --

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters