United States: NewPower Issues Grim Outlook to U.S. Regulators
In a recent report of its financial outlook to the U.S. Securities and Exchange Commission (SEC), NewPower Holdings (Purchase, New York) reported it had cash on hand to make it through this quarter, but it faced selling assets and cutting back operations, selling in fewer markets or even liquidating.
NewPower said it may not be able to sell its assets, secure financing or raise additional capital on attractive terms or at all, which would have an adverse effect on its ability to continue. It also said there was a chance its strategic alternatives, including possible liquidation, would not provide any positive value for NWPW stockholders after its liabilities were satisfied or otherwise addressed.
The firm cited PJM capacity charges for new market entrants, tougher credit terms imposed by regulators and utilities, the loss of all commodity and swap transactions with Enron, as well as volatile prices last year as reasons for its position.
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