Xcel says banks ask it to make "substantial" extra payments in NRG restructuring

New York, Dec. 17 - Xcel Energy said NRG Energy, Inc.'s banks have asked it to make "substantial" additional payments as part of a restructuring of its subsidiary's debt.

The Minneapolis energy company said in a filing with the Securities and Exchange Commission that the demand came from the steering committee of NRG's bank lenders and was included in their counter-proposal drawn up in response to Xcel's early plan.

Xcel added that the bondholder committee is not expected to produce its counter-proposal before the end of December.

NRG's initial restructuring proposal, presented to creditors in early November, would have included a $300 million payment by Xcel on completion of NRG's restructuring in return for release of all claims against Xcel.

Xcel did not say how big the banks' counter-claim is.

As previously reported, under Xcel's plan, holders of secured project-level debt would either have their debt reinstated with agreed modifications or receive the collateral securing the debt and a claim to make up any difference between the amount of the debt and the value of the collateral; holders of unsecured debt, holders of secured recourse claims against NRG and holders of other general unsecured claims would receive $500 million of junior secured debt of the reorganized NRG and 95% of the equity of the reorganized company; and holders of project-level general unsecured claims that are non-recourse to NRG would receive 5% of the equity or the reorganized NRG.

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