Entergy New Orleans files for bankruptcy in wake of Katrina

[stevedeshazer]

NEW ORLEANS (AP) - The New Orleans subsidiary of Entergy Corporation is declaring bankruptcy.

The move by Entergy New Orleans into Chapter Eleven protection comes as it works to restore gas and power service to the city. The request for "debtor-in-possession" financing would have the parent company make up to 200 (m) million dollars in loans to the utility. It's asking that up to 150 (m) million of that loans be approved on an interim basis.

Entergy says the money will mean the New Orleans unit will be able to pay employee wages and benefits and fund repairs and restoration of the facilities damaged by Hurricane Katrina.

Earlier in the week, Entergy estimated preliminary restoration costs for New Orleans at between 325 and 475 (m) million dollars.

http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=AP&Date=20050923&ID=5138536

[HereSince1628]

1. Entergy...the electricity and gas industry's answer to Tyson and Walmart

They're doing this to be able to pay employees less then the prevailing wage. Period. Greet the Fouckers!

[stevedeshazer]

2. In a related story two months from now,

Joe Bleaux and his family, long-time New Orleans residents who lost their home to Hurricane Katrina, were denied bankruptcy claims thanks to the the provisions of the federal bankruptcy act passed by Congress on April 14, 2005.

Now back to our special coverage of "Survivor: Boxers or Briefs?"

[SoCalDem]

4. As long as Joe & family file before 10-17-05

they should be able to :)
(cute NOLA spelling of their name ):)

[MaineDem]

7. They're just in time

Coincidence that it's now and not a month from now? I doubt it.

[Sub Atomic]

3. Yeah, it sure looks like Entergy is doing poorly

http://data.moneycentral.msn.com/scripts/chrtsrv.dll?Symbol=ETR&C1=0&C2=2&CF=0&D3=0&EFR=236&EFG=246&EFB=254&E1=0

[stevedeshazer]

5. Put that graph in a mirror

It looks like my family income. :(

[teryang]

6. I guess the shareholders need a handout n/t

[still_one]

8. If they file for bankruptcy will that come under the new bankruptcy law?

[stevedeshazer]

9. They, meaning "Entergy?"

The new bankruptcy law affects individuals.

[MaineDem]

10. More restrictions on companies under new bankruptcy law

It also affects businesses it seems...

More restrictions on companies under new bankruptcy law

By Harry R. Weber, AP Business Writer | September 23, 2005

Whether they are small retail stores or major publicly traded corporations, businesses will face more restrictions when the new bankruptcy law goes into effect Oct. 17.

...

One of the biggest changes in the business provisions of the law is a new limit on what's known as the exclusivity period, the 18-month span during which a company in Chapter 11 has the sole right to propose a reorganization plan. Under the old law, companies could have unlimited extensions of the exclusivity period; they lose that right under the new law.

The new law also gives a creditor who provides services to a company within the 20 days preceding a Chapter 11 petition the right to full payment for the services. Under the current law, those creditors may only get a fraction of what they are owed.

There will also be restrictions on severance payouts to executives of companies in bankruptcy. Severance for executives now can be any reasonable amount. Under the new law, it is limited to 10 times the average given to non-management employees in the calendar year paid.

http://www.boston.com/news/local/maine/articles/2005/09/23/more_restrictions_on_companies_under_new_bankruptcy_law/?rss_id=Boston.com+--+Maine+news