Reliant’s talks with bankers continue

March 31, 2003

HOUSTON (AP) — Reliant Resources Inc., which had $2.9 billion in debts due Friday, continued negotiations with its bankers Saturday.
The continuing talks indicate that the Houston energy merchant didn’t make the payment on time, but also that the banks didn’t take action against it.
Fitch Ratings, which had rated Houston’s main electricity provider as vulnerable to default, cut its rating further Friday to reflect high default risk as the company faced a Friday deadline to repay about half of almost $6 billion in debt without enough cash on hand. Another $3 billion comes due later this year and next year.
Reliant spokeswoman Sandy Fruhman said Saturday that talks were continuing and that Reliant had nothing to announce.

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