UNITED STATES 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 (Date of Earliest Event Reported): December 5, 1997
Commission File Number: 33-74254
COGENTRIX ENERGY, INC.
(Exact name of registrant as specified in its charter)
North Carolina 56-1853081
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
9405 Arrowpoint Boulevard, Charlotte, North Carolina 28273-8110
(Address of principal executive offices) (Zipcode)
(704) 525-3800
(Registrant's telephone number, including area code)
<PAGE>
ITEM 5. OTHER EVENTS
On November 23, 1997, Cogentrix Energy, Inc. announced the official
signing of three project documents with the Indian State of Karnataka
related to the Mangalore Power Project, being co-developed in India by
Cogentrix Energy, Inc. and China Light & Power (International), Ltd.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit No. Description of Exhibit
----------- ----------------------
99 Press Release, dated November 23, 1997
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SIGNATURE
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.
COGENTRIX ENERGY, INC.
(Registrant)
Date: December 5, 1997 /s/ JAMES R. PAGANO
---------------------------
James R. Pagano
Group Senior Vice President,
Chief Financial Officer
(Principal Financial Officer)
NEWS RELEASE
For Release Nov. 23, 1997 Media Contact: Dennis Alexander
COGENTRIX PROJECT IN INDIA
TAKES MAJOR STEP FORWARD
Charlotte, N.C. Nov. 23, 1997 -- The $1.4 billion Mangalore Power
Project, being co-developed in India by Cogentrix Energy, Inc. in conjunction
with China Light & Power (International), Ltd., has taken a significant step
forward with the official signing of three key documents with the Indian
State of Karnataka. The documents, the Power Purchase Agreement with the
Karnataka Electricity Board; the State Support Agreement with the Government
of Karnataka; and the State of Karnataka Guarantee collectively form the
contractual framework between the State Government and the partnership.
Following a roadmap outlined by the Government of India, the project
documents signed Nov. 17 now must be presented to the Ministry of Power in
New Delhi for final review and approval prior to being forwarded to the
Ministry of Finance. The Ministry of Finance is expected to issue what has
been referred to as a "counter-guarantee" for the project. This document,
which provides that the Government of India will back the obligations of the
Karnataka State Government contracts, is necessary for the financing.
Mark F. Miller, president and chief operating officer of Cogentrix, is
traveling to India with Secretary of Commerce William Daley in December.
Steps are being made which could allow the counter-guarantee to be signed
while Secretary Daley and Miller are in New Delhi as a part of this
Secretarial Trade Mission.
Michael Maley, Vice President of Development at Cogentrix and the
Mangalore Power Project Director, is optimistic that the project will soon
be in position to enter financing. "The signing of these three vital
documents is a big step for this project and is critically important to the
project's eventual success. Credit must be given to our team on the ground
in India and to the U.S. Department of Commerce for their continued support
and advocacy on our behalf. As a result, I am confident that we will soon
receive the counter-guarantee from the Government of India enabling us to
move the project into financing," said Maley.
The 1000 megawatt Mangalore Power Project, being developed in the
southern Indian State of Karnataka, is one of the eight power projects the
Government of India has designated as "fast-track". As such, these projects
are intended to promote participation in the Indian power sector and are
entitled to certain central government "guarantees" of contractual
obligations considered necessary for their successful financing. The project
is being developed by the Mangalore Power Company, which is controlled by the
sponsors, Cogentrix and China Light & Power (International), Ltd., an
electric utility headquartered in Hong Kong. The project is expected to
begin producing electricity in 2000.
China Light & Power is one of Hong Kong's ten largest capitalized
companies with market value in excess of HK$80 billion (approximately US$103
billion). It has been generating and distributing electricity in Hong Kong
for over 90 years.
Cogentrix, headquartered in Charlotte, develops, owns and operates
independent competitive power assets in the United States and abroad.
Based on new ownership of total megawatts of electricity produced by its
facilities, Cogentrix is among the largest independent power producers in
the United States.
