Entergy NewOrleans Inc. has asked the New Orleans City Council to approve itsproposed multistep restructuring plan that calls for the transfer ofsubstantially all of its assets and operations to a new subsidiary.
Under the merger transaction, the subsidiary would convertto a Texas corporation from a Louisiana corporation and transfer its assets andliabilities to Entergy New Orleans Power LLC in exchange for a membership stake.
In the next step, Entergy New Orleans will contribute itsmembership stake in the new subsidiary to Entergy Utility Holding Co. LLC,which will become the owner of Entergy New Orleans Power.
Entergy New Orleans will then change its name to Entergy NewOrleans Holdings Inc., and Entergy New Orleans Power will change its name toEntergy New Orleans LLC.
The plan also calls for the redemption of Entergy NewOrleans' outstanding preferred stock at a price of about $21 million, whichincludes an expected call premium of about $819,000, plus any accrued andunpaid dividends, according to a Form 8-K filed July 25.
The transaction, which is subject to FERC approval, isexpected to close by the end of 2017.