A decision to drop New World's stock listing was made by Nasdaq, but the troubled firm appealed and must now file its official financial reports for 1995 and the first quarter of 1996 with the SEC by July 1 to retain its listing. Nasdaq warned that if the company fails to comply, its securities will be deleted from the stock market.
On June 21, interim CEO George Petrenko said he expected New World would be able to meet the deadline. New World Power, which is in the midst of a restructuring of its debt with its two major secured lenders, also said a Price Waterhouse audit of 1995 operations is "well under way."
Because of its decision to sell various assets and close down other developments, the company said it expects to record a one-time "write-down" of asset values for 1995 of about $23-$28 million, which comprises most of the anticipated loss for the year.
Regarding the debt restructuring, New World's $15.7 million 8% subordinated convertible loans from a group led by Robert Fleming & Co will now mature on July 31, 1997, with 1996 interest to be paid by issuing additional notes and warrants. In addition, interest and principal payments on Sundial International Fund Ltd loans have been deferred to December 1 or later.
Meantime in Texas, the state Public Utility Commission approved the power sales agreement for the Big Springs project and New World is proceeding with requests for proposals for turnkey construction and management of the project, to begin operation in early 1998. Prospective suppliers were required to respond by July 1. New World was at one point to install Enercon turbines under a partnership with the German manufacturer. But Kenetech Corp had legally tried to block Enercon sales in the US, because it says Enercon is infringing its variable speed technology patent. The financial outlook for New World is also uncertain and has diminished Enercon's interest in a partnership.
The company also announced last month that it is successfully proceeding with attempts to sell power plant and other assets and is in the process of selling power generation development assets to provide funds for debt retirement and project development.