PURCHASE, N.Y., June 11, 2002 — NewPower Holdings Inc. and its subsidiaries TNPC Holdings, Inc. and The New Power Co., recently announced that they have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U. S. Bankruptcy Court for the Northern District of Georgia.
In 2001 and 2002 several factors severely and adversely affected NewPower’s liquidity and cash resources and accordingly the company has been facing the substantial risk of not being able to continue to operate as an independent entity. During the past few months, NewPower has been reviewing all of its strategic alternatives and is in discussion with several parties concerning the sale of its assets.
The Chapter 11 filing offers a process that allows the potential purchasers to acquire these assets free of liability and also enables NewPower to continue the operation of its business during the sale approval process. Accordingly, NewPower expects that the delivery of commodity and service to customers will continue without disruption.
As announced yesterday and subject to bankruptcy court approval, NewPower has agreed to transition all of its Texas power customers in the TXU service area to Reliant Energy Retail Services, LLC, and its customers in the Reliant service area to TXU Energy Retail Company LP.
NewPower plans to seek permission in a variety of first day motions with the bankruptcy court to approve the transition of the company’s Texas customers to Reliant and TXU and to continue to make payments for employees’ payroll and benefits and for certain suppliers and vendors in the normal course of business, among other matters.
About NewPower Holdings, Inc.
NewPower Holdings, Inc. through The New Power Company, is the first national provider of electricity and natural gas to residential and small commercial customers in the United States. The company offers consumers in restructured retail energy markets competitive energy prices, pricing choices, improved customer service and other innovative products, services and incentives.