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NorthWestern fails to receive votes for debt restructuring stock issuance, may file for Chapter 11
By Carlise Newman
Chicago, Sept. 12 - NorthWestern Corp. said it did not receive sufficient votes from stockholders on a proposal to increase additional shares as part of its effort to restructure its debt.
The company said it is considering filing for Chapter 11 bankruptcy protection.
The Sioux Falls, S.D. electricity and natural gas provider said that in response to failing to achieve the necessary stockholders votes to amend its certificate of incorporation it cancelled the previously adjourned stockholder meeting.
"We are very disappointed that we were unable to obtain shareholder approval of this proposal," said Gary Drook, president of NorthWestern.
"This proposal was one of the necessary preconditions to provide the company the ability to restructure its debt outside of bankruptcy.
"As we have stated, we are examining the possibility of seeking protection under Chapter 11 - an option that would enable us to continue to operate our business normally while we develop a financial restructuring plan that attracts the support of our creditors. Our primary business mission remains being a stable and reliable provider of electricity and natural gas to our customers."
The proposal would have amended the company's restated certificate of incorporation including authorizing an increase in the number of shares of common stock to 250 million shares from 50 million and authorizing issuance of up to 50 million shares of new preferred stock.
NorthWestern's stockholders meeting was adjourned on Aug. 26 to allow for continued voting on the proposal. As of Sept. 12, Northwestern had received 17,344,109 votes for the proposal; passage of the proposal requires a majority, or 18,840,049 votes.
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