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Title: |
Plan Support Agreement |
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Entities: |
ABN AMRO Bank N.V.; Barclays Bank plc; NRG Energy, Inc.; Royal Bank of Scotland plc; Smith Barney Inc.; Xcel Energy Inc.; Bingham McCutchen; Jones, Day, Reavis & Pogue; Kirkland & Ellis; Simpson Thacher & Bartlett; NRG Energy, Inc. |
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Date: |
2003 |
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Size: |
Preview shows 7KB of 196KB total |
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Price: |
$68 |
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ID: |
#295014 |
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PLAN SUPPORT AGREEMENT
This PLAN SUPPORT AGREEMENT (this "AGREEMENT") is made and entered into as
of May 13, 2003 by and among (i) NRG Energy, Inc. ("NRG"), (ii) certain of NRG's
subsidiaries and affiliates as set forth on SCHEDULE 1-A (the "RELEVANT NRG
SUBSIDIARIES" and, together with NRG, the "NRG GROUP"), (iii) Xcel Energy Inc.
("XCEL"), (iv) the persons identified on SCHEDULE 1-B (collectively, the
"SUPPORTING NOTEHOLDERS") and (v) the persons identified on SCHEDULE 1-C who are
signatories to this Agreement (collectively, the "SUPPORTING LENDERS", and
together with the Supporting Noteholders, the "SUPPORTING CREDITORS") (the NRG
Group, Xcel and the Supporting Creditors, collectively, the "PARTIES" and
individually, a "PARTY").
RECITALS
WHEREAS:
A. NRG has issued from time to time the several series of senior notes and
other instruments described on SCHEDULE 2-A (collectively, the "SENIOR NOTES");
B. One or more of the NRG Group members is a borrower or account party in
respect of the credit facilities and other financial obligations described on
SCHEDULE 2-B (the "LENDER FACILITIES");
C. Each NRG Group member is contemplating a restructuring of its financial
obligations through the prosecution of jointly administered chapter 11 cases
(collectively, the "CHAPTER 11 CASES"; the court adjudicating the Chapter 11
Cases is referred to as the "BANKRUPTCY COURT");
D. The Parties have reached an agreement in principle on the terms and
conditions (i) of the NRG Plan (as defined in the Term Sheet, as defined below)
(such plan together with all plan related documents, agreements, supplements and
instruments, the "NRG PLAN"); and (ii) regarding the settlement of claims and
causes of action the NRG Group and other parties in interest in the Chapter 11
Cases have asserted or could assert against Xcel; such terms and conditions
being set forth in the Term Sheet Concerning NRG Plan And Relationship With Xcel
Energy Inc. (the "TERM SHEET") attached hereto as EXHIBIT A;
E. The NRG Group and the Supporting Creditors acknowledge and agree that
the best way to proceed to effectuate the NRG Plan is to do so in a way that
would:
1. maximize the value of the NRG Group for the benefit of all
interested persons;
{PAGE}
PAGE 2
PROVIDED AS PART OF SETTLEMENT
DISCUSSIONS; SUBJECT TO FEDERAL
RULE OF EVIDENCE 408 AND ALL
BANKRUPTCY AND STATE LAW EQUIVALENTS
2. minimize the disruption to the NRG Group resulting from the
commencement of the Chapter 11 Cases, by seeking to conclude the
Chapter 11 Cases as quickly as possible; and
3. facilitate the NRG Group's ability to obtain postpetition financing
and post-reorganization financing on favorable terms, in order to
minimize the cost, conditions and restrictions thereof to the NRG
Group;
F. The Parties desire to express to each other their mutual support and
commitment in respect of the matters discussed in the Term Sheet, including the
consummation of the NRG Plan consistent therewith; and
G. In expressing such support and commitment, the Parties do not desire
and do not intend in any way to derogate from or diminish the solicitation
requirements of applicable securities and bankruptcy law, the fiduciary duties
of the members of the NRG Group as debtors in possession, the fiduciary duties
of any Supporting Creditor who is appointed to the official committee of
unsecured creditors (the "CREDITORS' COMMITTEE") in the Chapter 11 Cases or the
role of any state or federal agencies with regulatory authority concerning any
member of the NRG Group.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements set forth herein, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Parties hereby
agree as follows:
1. Defined Terms. All capitalized terms not otherwise defined herein shall
have the meanings ascribed to them in the Term Sheet.
2. Term Sheet Conditions. Without limiting the conditions set forth
herein, each Party's agreement to this Agreement and support for the NRG Plan
and the Term Sheet is expressly conditioned on satisfaction of each of the terms
and conditions set forth in the Term Sheet and this Agreement. To the extent any
such conditions involve a time period or an outside date for satisfaction, the
Parties acknowledge and agree that time is of the essence with respect to each
such condition.
3. NRG Group's Support. The NRG Group believes that consummation of the
NRG Plan will best facilitate its business and financial restructuring and that
consummation of the settlements described in the Term Sheet is in its best
interests and in the best interests of its creditors and other parties in
interest. Accordingly, the NRG Group hereby expresses its intention to file and
seek confirmation of the NRG Plan consistent with the terms and provisions
{PAGE}
PAGE 3
PROVIDED AS PART OF SETTLEMENT
DISCUSSIONS; SUBJECT TO FEDERAL
RULE OF EVIDENCE 408 AND ALL
BANKRUPTCY AND STATE LAW EQUIVALENTS
of the Term Sheet. Without limiting the foregoing, the NRG Group intends, for so
long as this Agreement remains in effect:
a. to submit for, and use its best efforts to obtain at the earliest
practicable date, Bankruptcy Court approval of a disclosure statement (as
approved by the Bankruptcy Court, the "DISCLOSURE STATEMENT") in form and
substance satisfactory to Xcel and the Supporting Creditors;
b. to use its best efforts to solicit the requisite votes in favor
of, and to obtain confirmation by the Bankruptcy Court at the earliest
practicable date of, the NRG Plan in form and substance satisfactory to
Xcel and the Supporting Creditors and approval by the Bankruptcy Court of
the settlement set forth in the Term Sheet;
c. not to pursue, propose or support, or encourage the pursuit,
proposal or support of, any plan of reorganization for any member of the
NRG Group that is not consistent with the Term Sheet and the NRG Plan; and
d. to otherwise use its best efforts to take, or cause to be taken,
all actions, and to do, or cause to be done, all things, necessary, proper
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