NorthWestern unit Netexit's liquidation plan approved, to emerge from Chapter 11 Sept. 29

By Caroline Salls

Pittsburgh, Sept. 14 - NorthWestern Corp. subsidiary Netexit, Inc.'s Chapter 11 liquidation plan was approved Wednesday, according to a NorthWestern news release.

Netexit filed for Chapter 11 bankruptcy with the U.S. Bankruptcy Court for the District of Delaware on May 4, 2004 and plans to emerge from bankruptcy on Sept. 29.

Under the plan:

* NorthWestern will receive a $20 million initial cash distribution for its allowed claims;

* A reserve of $5 million will be set aside through the plan for an additional distribution to NorthWestern after distributions are made on other allowed unsecured claims;

* A reserve of up to $22.9 million will be set aside through the plan for payment of non-NorthWestern unsecured claims with distribution to occur only after all unsecured claims are resolved. Any remaining cash from this reserve that is not paid out to other unsecured claims will be paid to NorthWestern;

* $8 million will be paid to securities class action claimants to satisfy a liquidated claim awarded to former NorthWestern shareholders in a court-approved settlement; and

* After distributions are made to unsecured, administrative and priority claims, any remaining Netexit estate funds will be paid to NorthWestern.

NorthWestern, a Sioux Falls, S.D., provider of electricity and natural gas, emerged from Chapter 11 on Nov. 1, 2004.

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