CHICAGO, April 5, 2002 — ETT Nevada, Inc., an indirect subsidiary of Exelon Corp., filed for protection under Chapter 11 of the Bankruptcy Code on April 4, 2002.
This filing was necessary to protect ETT Nevada’s $9.3 million equity investment in Northwind Aladdin, LLC from the risk of loss due to a possible lender foreclosure and to avoid disruption to Northwind Aladdin’s business and operations.
Northwind Aladdin owns and operates an energy facility that provides hot water, chilled water and back-up emergency electrical generation to the Aladdin Hotel and Casino and an adjoining shopping mall in Las Vegas, Nevada. The equity investment in Northwind Aladdin is ETT Nevada’s only material asset, and represents a 75% ownership interest in Northwind Aladdin. The remaining 25% is owned by a subsidiary of Sierra Pacific Resources, an unaffiliated third party.
The energy facility was financed through non-recourse project financing and equity contributions by ETT Nevada and Sierra Pacific’s subsidiary. ETT Nevada’s equity investment is pledged as collateral for Northwind Aladdin’s $23 million non-recourse project financing. The financing is in default due to Aladdin Gaming, LLC, the owner of the Aladdin Hotel and Casino, filing for protection under Chapter 11 of the Bankruptcy Code in September 2001.
Only Northwind Aladdin, and no other Exelon company, is liable on this financing, which is with an unaffiliated financial institution. Northwind Aladdin’s energy facility continues to operate and provide services to the Aladdin Hotel and Casino.
Exelon Corporation is one of the nation’s largest electric utilities with approximately 5 million customers and more than $15 billion in annual revenues. The company has one of the industry’s largest portfolios of electricity generation capacity, with a nationwide reach and strong positions in the Midwest and Mid-Atlantic.
Exelon distributes electricity to approximately 5 million customers in Illinois and Pennsylvania and gas to more than 440,000 customers in the Philadelphia area. The company also has holdings in such competitive businesses as energy, infrastructure services, energy services and telecommunications. Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.