August 15, 2002 — In a Securities and Exchange filing late Wednesday, Dynegy Inc. said it may have to consider bankruptcy if its planned sale of Northern Natural Gas is delayed or canceled.
The energy company also revealed in its latest 10-Q filing that it might not be able to pay its near-term debts if its cash liquidity situation is not improved.
The sale of Northern Natural Gas, which it planned to complete in August, is expected to reduce Dynegy’s debt by $950 million, Dow Jones Newswires reported.
Dynegy bought the pipeline system from Enron Corp. six months ago, but it made an agreement in July with MidAmerican Energy Holdings Co. to sell the company to reduce mounting debt. The multi-branched Northern Natural Gas pipeline runs 16,600 miles from Texas to the upper Midwest.
Dynegy reported it would have to miss the Aug. 14 deadline to certify its second-quarter financial statements. They are waiting on a re-audit of three years’ worth of statements by PriceWaterhouseCoopers, expected by the end of the year, Dow Jones reported.