NorthWestern files for bankruptcy – Alliance could act fast on NorthWestern purchase offer

An alliance formed last fall to try purchasing the utility operations of bankrupt NorthWestern Corp. may be ready to make a bid before the end of the month, a spokeswoman for one of those involved in the effort said Friday.

By BOB ANEZ Associated Press Writer

http://missoulian.com/articles/2004/03/12/mtracker/news/61nwnrg.txt

Linda Donlin of MDU Resources Inc. said an offer could be made in a couple of weeks if a review of the company’s reorganization plan and related documents provide sufficient information.

With NorthWestern filing its plan in the federal bankruptcy court Thursday, teams of employees already have started poring over all the information available so that a decision can be made on a purchase proposal, she said.

"One of the things we’re looking for is what liabilities will still be part of NorthWestern" when it would emerge from bankruptcy under the plan, Donlin said. Of special concern is the Milltown Dam Superfund cleanup site east of Missoula, she added.

MDU Resources joined with electric cooperatives in three states last November to announce their interest in purchasing NorthWestern’s utility holdings.

The North Dakota-based MDU teamed with East River Electric Power Cooperative in Madison, S.D., Basin Electric Power Cooperative of Bismarck, N.D., and Montana Associated Cooperatives in Great Falls, Mont., to begin the process of determining what the company’s utility holdings are worth.

NorthWestern Corp. has 608,000 customers in Montana, South Dakota and Nebraska. It is the parent company of NorthWestern Energy, which provides electricity to more than 300,000 customers in Montana, and natural gas to about 157,000 customers.

The Sioux Falls, S.D., company filed for bankruptcy in September after its stock plummeted and the company rolled up $2.2 billion in debt.

Although NorthWestern officials have repeatedly said the utility operations are not for sale, Gary Drook, president and chief executive officer for NorthWestern, acknowledged Friday that the decision would be up to the creditors.

Montana Associated Cooperatives is a company formed by 10 of the 26 members of the Montana Electric Cooperatives’ Association.

Dave Wheelihan, general manager of the association, said MDU and the co-ops "still have a high level of interest" in buying the utility.

Montana’s six largest cities also have expressed an interest in buying the utility.

"I am sure other people will try to put together offers that they believe will be more valuable to the creditors than this one," Drook said. But so far, the company’s creditors have yet to see "anything that would be more favorable than this plan of reorganization," he added.

He also said he expects competing reorganization plans to be submitted as well.

Jesse Austin III, NorthWestern’s lead bankruptcy attorney, said offers to buy can come in at any time, but alternative reorganization plans cannot be submitted unless the creditors or bankruptcy judge reject the company’s blueprint.

He said any purchase offer would have to match, or probably exceed, the estimated $710 million equity value of the reorganized company.