The U.S. Bankruptcy Court for the Southern District of New York on Tuesday entered an order confirming a plan of reorganization for 21 of NRG Energy Inc.’s (NRG) operating subsidiaries in the Northeast and South Central regions of the U.S.

The subsidiaries, which are owned by NRG Northeast Generating LLC and South Central Generating LLC, operate power generation facilities in New York, Connecticut, Massachusetts and Louisiana.

A key condition of the subsidiaries’ plan of reorganization is completion of $2.215 billion in exit financing which will be used to pay off all existing secured debt of the subsidiaries covered by the plan. The subsidiaries are expected to emerge from bankruptcy upon completion of the financing.

The confirmation follows Monday’s order by the court confirming NRG Energy Inc.’s plan of reorganization, clearing the way for the company to emerge from Chapter 11 by the end of the year.

NRG’s creditors recently reported that all of the necessary creditor classes voted overwhelmingly in favor of the company’s proposed plan of reorganization.

NRG also announced that its power marketing unit, NRG Power Marketing Inc. is expected to emerge from Chapter 11 at the same time as NRG.

Under the terms of the plan of reorganization, Xcel Energy will make payments up to $752 million to NRG and its creditors during the first five months of 2004 if the company emerges from Chapter 11 by the end of the year.

Separately, NRG said that the bankruptcy court approved the appointment of David Crane, currently the president and chief executive officer of London-based International Power, as NRG’s new president and CEO. Crane will join NRG on Dec.

©Copyright 2003 Intelligence Press Inc. Allrights reserved. The preceding news report may not be republishedor redistributed, in whole or in part, in any form, without priorwritten consent of Intelligence Press, Inc.