Oct 29 (Reuters) - Entergy Corp (ETR.N) is likely to delay a proposed spinoff of its five nuclear-power plants into the nation’s first standalone nuclear-generating company, the Wall Street Journal said.
The present financial crisis has clouded prospects for completion of the largely debt-financed transaction, the paper said in a report quoting Entergy Chief Financial Officer Leo Denault. Last year, Entergy announced plans to transfer the five stations to a new publicly traded company, hoping to capitalize on the plants’ low operating costs and carbon-free emissions.
The paper cited Denault as saying that the company was able to secure a $1 billion credit revolver from a bank syndicate but completion of the deal required $4.5 billion in debt financing.
Entergy could not be immediately reached for comment by Reuters.
The New York attorney general opposes the spinoff and has said that the new company would have too much debt and was not in the public interest. (Reporting by Ajay Kamalakaran in Bangalore; Editing by Lincoln Feast)