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Power Plant Owner Files for Chapter 11

From Times Staff and Wire Reports

NRG Energy Inc. of Minneapolis filed for Chapter 11 bankruptcy protection to restructure more than $9.2 billion of debt taken on building and buying power plants, including some in California.

Like many independent power producers, NRG has been teetering on the edge of a bankruptcy filing for months after missing interest payments to bondholders and defaulting on bank loans.

The bankruptcy filing by NRG, a subsidiary of Xcel Energy Inc., may set the stage for others in the energy industry, as companies struggle to reorganize more than $100 billion in debt coming due this year.

NRG has been implicated in trading scandals involving the alleged manipulation of California power markets.

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