FOR IMMEDIATE RELEASE
April 8, 1996
Zeigler / NRG Confirms Proposal
to Purchase Cajun Assets Zeigler Coal Holding Company (NYSE:
ZEI) and NRG Energy, Inc., the non-regulated affiliate of Minneapolis-based
Northern States Power Company, confirmed today that they have submitted a joint
proposal to purchase the non-nuclear assets of Cajun Electric Power Cooperative,
Inc. of Baton Rouge, Louisiana.
Cajun Electric filed for Chapter 11 bankruptcy in December 1994. The
Zeigler/NRG proposal was made in response to a request for proposals from the
bankruptcy trustee. Zeigler/NRG has learned that their submittal was named lead
proposal by the bankruptcy trustee. The trustee today stated that it was his
intention to file a plan of reorganization that incorporates the Zeigler/NRG
proposal on April 22, 1996.
According to a statement from the Zeigler/NRG team, While we are still
in the early stages of what may be a lengthy process, we are delighted to have
been selected as the lead proposal for the purchase of Cajun's assets.
We believe that our proposal represents the best option for the trustee to
balance the interests of all stakeholders in Cajun's bankruptcy. These
stakeholders include the customers of Cajun and its member co-ops, the Rural
Utilities Service (formerly the Rural Electrification Administration), the
Louisiana Public Service Commission, the secured and unsecured creditors, owners
and employees of Cajun and other parties. We look forward to working closely
with the trustee to confirm a plan of reorganization that allows Cajun to emerge
from Chapter 11 bankruptcy.
NRG is one of the leading participants in
the independent power generation industry. Established in 1989, and wholly
owned by Northern States Power, NRG is principally engaged in the acquisition,
development and operation of independent power production and transmission
facilities, thermal energy production and transmission facilities and resource
recovery facilities. NRG has a proven track record in operating, maintaining
and owning interests in large, coal-fired generation facilities.
The Zeigler family of companies is among the largest coal producers
and marketers in the United States, and controls more than 1.3 billion tons of
economically recoverable coal reserves, including 1 billion tons of low sulfur
coal. The Zeigler family of companies currently operates 11 underground and
surface coal mining complexes, located in Illinois, Kentucky, Ohio, West
Virginia and Wyoming, which mine primarily steam coal. In addition, the company
operates two East Coast import/export terminals and a clean coal technology
corporation. A Zeigler subsidiary has supplied more than 90% of the coal
provided to Cajun since 1982.
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