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NEWS

July 14, 2008
Curtis New York Obtains Court Approval of “Global Settlement Agreement” for NorthWestern Energy

 

Curtis successfully negotiated and obtained the Delaware Bankruptcy Court‘s approval of the global settlement of NorthWestern‘s (NYSE: NWE) long-running and highly complex litigation with Magten Asset Management and Law Debenture Trust Company of New York. The Global Settlement resolves litigation arising out of a pre-bankruptcy restructuring that certain creditors had argued was a fraudulent conveyance, among other claims. The $23 million settlement payment to the plaintiffs is to be funded by a reserve for disputed claims that was created under NorthWestern‘s confirmed Chapter 11 plan and will be effectuated through NorthWestern‘s buy-back of certain of its publicly traded shares held in the reserve. Thus, the Global Settlement did not require NorthWestern to pay any consideration out of the Company, and in fact, resulted in a recovery to NorthWestern of previously incurred legal fees and expenses of $4 million. The settlement was approved over vigorous opposition by an “Ad Hoc Committee” of noteholders, holding claims of approximately $340 million. With the Court approval of the Global Settlement, NorthWestern is substantially closer to resolving the remaining issues in its Chapter 11 case.

The Curtis team advising NorthWestern on the Global Settlement included partner Steven J. Reisman and counsel Jerrold L. Bregman from the Restructuring & Insolvency group and partners Joseph D. Pizzurro and Nancy E. Delaney from Litigation.

NorthWestern’s announcement of the Global Settlement  was widely reported by the Associated Press and other publications.

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