Date: Thu, 20 Nov 1997 19:15:43 GMT Server: NCSA/1.5.2 Last-modified: Mon, 24 Feb 1997 22:16:27 GMT Content-type: text/html Content-length: 5111 Zeigler/NRG, Trustee Forge Amended Cajun Agreement

Contact:
Vic Svec
Zeigler Coal Holding Company
618-394-2430
Mike O'Sullivan
NRG Energy, Inc.
612-373-5408
FOR IMMEDIATE RELEASE August 1, 1996


Zeigler/NRG, Trustee Forge Amended Cajun Agreement

Zeigler Coal Holding Company (NYSE: ZEI) and NRG Energy, Inc., the non-regulated affiliate of Minneapolis-based Northern States Power Company (NYSE: NSP), today reported that their affiliate (Louisiana Generating LLC) has amended its agreement with the bankruptcy trustee and satisfied key concerns to allow continuation of a joint bid to purchase the non-nuclear assets of Cajun Electric Power Cooperative, Inc. of Baton Rouge, Louisiana.

The $1.1 billion NRG/Zeigler proposal was originally made in response to a request for proposals from the bankruptcy trustee for the Cajun estate. In April, NRG/Zeigler's submittal was selected as the lead proposal by the bankruptcy trustee. He then filed with the bankruptcy court a plan of reorganization that incorporated the proposal on April 22, 1996, and submitted a definitive purchase agreement on June 15, 1996. On July 15, the bankruptcy court declared as reasonable some but not all buyer protection provisions in the NRG/Zeigler definitive agreement and provided guidance on related provisions that would be acceptable.

Key elements of the amended Asset Purchase and Reorganization Agreement between NRG/Zeigler and the bankruptcy trustee include:
  • Buyer protection provisions addressing the concerns raised by the bankruptcy judge in his July 15 order;
  • A purchase price adjustment based on interest rate fluctuations through the confirmation hearings; and
  • Rate reduction for Cajun's members to 40.0 mills, consistent with discussions between NRG/Zeigler and the members' committee.
According to a statement by the NRG/Zeigler team, "The revised agreement with the trustee resolves concerns that could have prevented our joint participation in the plan confirmation process, and we believe it also addresses the issues expressed by the bankruptcy judge in his July 15th order. We are pleased that the trustee continues to believe that the Zeigler/NRG proposal represents the best overall option. We look forward to using the time prior to the confirmation hearing to develop a solid consensus between us and the other stakeholders."

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 underground and surface coal mining complexes in Illinois, Kentucky, Ohio, West Virginia and Wyoming. In addition, the company owns and operates two East Coast transloading terminals and ENCOAL, a clean coal technology corporation. A Zeigler subsidiary has supplied more than 90% of the coal provided to Cajun since 1982.

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, fossil-fuel generation facilities.

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