SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: March 20, 1997
LG&E ENERGY CORP.
(Exact name of registrant as specified in its charter)
Kentucky 1-10568 61-1174555
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
220 West Main Street
P.O. Box 32030
Louisville, KY 40232
(Address of principal executive offices)
(502) 627-2000
(Registrant's telephone number)
Item 5. Other Events.
On March 19, 1997, LG&E Energy Corp. announced that a federal bankruptcy court
selected the Company's proposal to lease the generating assets of Big Rivers
Electric Corporation in a court ordered auction. Under the terms of the
proposal, the Company will lease the approximate $1.3 billion of generating
assets of the Henderson, Ky.-based cooperative for 25 years and provide power
to Big Rivers to serve its members cooperatives and their 90,000 customers at
reduced rates.
Item 7(c). Exhibits Filed.
Exhibit
Number Description
99.01 News Release dated March 19, 1997.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
LG&E ENERGY CORP.
Registrant
Date: March 20, 1997 /s/ John R. McCall
John R. McCall
Executive Vice President, General
Counsel and Corporate Secretary
Exhibit 99.01
Federal Court Awards LG&E Energy Corp. Big Rivers Deal
LOUISVILLE, Ky., March 19 /PRNewswire/ -- A federal bankruptcy court selected
LG&E Energy Corp.'s (NYSE:LGE) proposal to lease the generating assets of Big
Rivers Electric Corporation in a court ordered auction today. Under the terms
of the proposal, LG&E will lease the approximate $1.3 billion of generating
assets of the Henderson, Ky.-based cooperative for 25 years and provide power
to Big Rivers to serve its member cooperatives and their 90,000 customers at
reduced rates. The bankruptcy court established the auction process on Feb. 19
to ensure that Big Rivers' creditors would receive the highest possible value
from the chapter 11 bankruptcy proceeding.
"This is a significant advancement for LG&E Energy in the competitive energy
market," said Roger Hale, Chairman and Chief Executive Officer, LG&E Energy
Corp. "We will have access to approximately 1,700 megawatts of low-cost
generating capacity to serve an important new customer base and also will
enhance our strategic marketing position. LG&E Energy shareholders can expect
to see a significant accretion in earnings beginning in 1998 as a result of
this agreement."
The LG&E Energy proposal mirrors the transaction structure outlined in Big
Rivers' reorganization plan under which Big Rivers would have leased its
generating assets to Pacificorp. However, the LG&E Energy plan provides $50
million of additional value over the Pacificorp arrangement to Big Rivers, its
member cooperatives, customers and creditors.
LG&E Energy and Big Rivers will now complete negotiations with creditors and
customers and file a reorganization plan that details the terms of the proposal
in order to bring resolution to the long bankruptcy process.
LG&E Energy Corp. is an industry-leading energy services holding company
headquartered in Louisville, Ky. The company has assets and operations in
retail and wholesale power and natural gas services and marketing. It has
offices, operations and partnership projects throughout the U.S. as well as
Canada, Argentina and Spain.
Statements made in this release that state the company's or management's
intentions, expectations or predictions of the future are forward looking
statements. The company's actual results could differ materially from those
projected in the forward looking statements, and there can be no assurance that
estimates of future results will be achieved. The company's SEC filings,
including but not limited to its Form 10-Q filed with the SEC on November 12,
1996, and its Form 8-K filed with the SEC on November 25, 1996, contain
additional information concerning factors that could cause actual results to
differ materially from those in the forward looking statements.
