NRG Energy Inc. last Monday said that it was deferring the $53.5 million principal payment due on its NRG Northeast Generating LLC bond series, but in a sliver of good news the financially troubled generator said last week it made the $24.7 million interest payment due on the series.

NRG in December deferred approximately $78 million in combined principal and interest payments on the Northeast Generating bond series and the company had until December 30 to make payment. In reaction to the default, Standard and Poor’s Ratings Services cut NRG Energy Northeast Generating’s credit rating to D from CC.

The NRG Northeast Generating bond series are non-recourse to NRG and its parent company, Xcel Energy. The NRG Northeast Generating bonds include 8.06% Series A-1 senior secured bonds due 2004, 8.84% Series B-1 senior secured bonds due 2015 and 9.29% Series C-1 senior secured bonds due 2024.

“NRG is continuing to negotiate with all of its lenders in the context of a comprehensive restructuring plan,” said Richard C. Kelly, NRG president and chief operating officer. “We intend to address the $53.5 million principal payment as part of the broader plan.”

Over the last few months, the company has been engaged in negotiations with its bank lenders and bondholders to develop a plan for restructuring the company’s debt. In early November, an NRG restructuring plan was presented to the company’s creditors. The restructuring plan also included a proposal addressing Xcel’s continuing role and degree of ownership in NRG and obligations to the generator. The plan proposed upon consummation of the restructuring that Xcel would pay $300 million to NRG. The plan separately proposed that Xcel would surrender its equity ownership of NRG.

Meanwhile, NRG recently asked a bankruptcy court to dismiss an involuntary bankruptcy petition recently filed against it by several of its former executives. NRG doesn’t believe bankruptcy is the best option and is continuing to attempt a financial settlement with its lenders outside the courtroom.

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