bankruptcy in california ; implications for our growth energy name s bankruptcy in california ; implications for our growth energy names
* we would not sell energy merchants / power producers on news that pcg
has declared chapter 11 bankruptcy .
* ongoing payments in california are being made by the state ;
therefore do not anticipate material exposure for ongoing earnings .
* primary exposure is current receivables : ( 1 ) these one - time amounts
are limited ( roughly estimate max . of 50 % of 2001 earnings ) ; and ( 2 ) we
expect that , as trade creditors , they will get high priority in a bankruptcy
proceeding . we think most of these amounts are likely to be recoverable ,
although a significant ( perhaps several year ) delay is possible as these
claimants work their way through the bankruptcy process .
* by our rough estimation , companies with fairly significant one - time
earnings exposure include : nrg , mir , dyn , cpn . companies with fairly small
exposure include : ene , aes , wmb , epg and duk .
> >
raymond c . niles
power / natural gas research
salomon smith barney
( 212 ) 816 - 2807
ray . niles @ ssmb . com
s
- pcg bankruptcy 4 - 9 - 01 . pdf
- pcg bankruptcy 4 - 9 - 01 . doc
bankruptcy in california ; implications for our growth energy name s
bankruptcy in california ; implications for our growth energy names
* we would not sell energy merchants / power producers on news that pcg
has declared chapter 11 bankruptcy .
* ongoing payments in california are being made by the state ;
therefore do not anticipate material exposure for ongoing earnings .
* primary exposure is current receivables : ( 1 ) these one - time amounts
are limited ( roughly estimate max . of 50 % of 2001 earnings ) ; and ( 2 ) we
expect that , as trade creditors , they will get high priority in a bankruptcy
proceeding . we think most of these amounts are likely to be recoverable ,
although a significant ( perhaps several year ) delay is possible as these
claimants work their way through the bankruptcy process .
* by our rough estimation , companies with fairly significant one - time
earnings exposure include : nrg , mir , dyn , cpn . companies with fairly small
exposure include : ene , aes , wmb , epg and duk .
> >
raymond c . niles
power / natural gas research
salomon smith barney
( 212 ) 816 - 2807
ray . niles @ ssmb . com
s
- pcg bankruptcy 4 - 9 - 01 . pdf
- pcg bankruptcy 4 - 9 - 01 . doc