Summary
This 8-K filing from Exelon Corporation (EXC) on September 15, 2008, addresses the company's exposure and potential impact from the bankruptcy filing of Lehman Brothers Holdings Inc. Exelon and its subsidiaries (Generation, ComEd, PECO) have business relationships with Lehman subsidiaries, including wholesale energy marketing transactions and credit facility commitments. Exelon explicitly states that the Lehman bankruptcy is not expected to have a material adverse effect on its financial health or liquidity, either individually or collectively with its subsidiaries. The company has identified a direct net exposure of less than $30 million pre-tax in wholesale energy marketing, for which it has the right to terminate the transaction. Regarding credit facilities totaling $7.6 billion, Lehman Brothers Bank's commitment was $283 million, and Exelon believes this reduction will not significantly impact liquidity.
Key Highlights
- 1Lehman Brothers Holdings Inc. filed for Chapter 11 bankruptcy protection on September 15, 2008.
- 2Exelon and its subsidiaries (Generation, ComEd, PECO) have business relationships with Lehman subsidiaries.
- 3Exelon believes the Lehman bankruptcy will NOT have a material adverse effect on the company or its subsidiaries.
- 4Direct net exposure to Lehman Brothers Commodity Services Inc. is estimated to be less than $30 million pre-tax.
- 5Exelon has the right to terminate wholesale energy marketing transactions with Lehman Brothers Commodity Services Inc. due to the bankruptcy filing.
- 6Lehman Brothers Bank had a $283 million commitment within Exelon's aggregate $7.6 billion credit facilities.
- 7Exelon does not anticipate a significant impact on liquidity due to the reduction in credit facility capacity from Lehman Brothers Bank.