What is the nature of the note receivable and its potential risk to NextEra Energy?

NextEra Energy (NEE) has a note receivable from Olympus Communications, L.P., an indirect subsidiary of Adelphia Communications Corp., amounting to approximately $127 million as of March 31, 2002. This note is secured by a redeemed ownership interest in Olympus. The primary risk to NEE lies in the recent financial distress reported by Olympus and Adelphia, including missed interest payments, which could jeopardize the repayment of this note.

What recent events have increased the concern regarding this note receivable?

The concern is heightened by announcements on May 17, 2002, stating that Olympus missed an interest payment on its senior notes, and Adelphia missed interest and dividend payments on its senior notes and convertible preference stock. These events signal significant financial difficulties for both entities.

What was Olympus's financial position prior to these recent events?

Based on its Quarterly Report on Form 10-Q for the period ended September 30, 2001, Olympus reported total assets exceeding liabilities by approximately $3.6 billion and served 1,787,000 basic subscribers. However, the filing cautions that this information may not be indicative of its current financial position, as Olympus has not filed its subsequent financial reports.

Is NextEra Energy taking any action in response to these developments?

Yes, NextEra Energy is actively monitoring the developments concerning Olympus and Adelphia, particularly in light of reported SEC investigations into Adelphia's accounting and disclosure practices. The company is assessing the implications for its note receivable.

NEXTERA ENERGY INC 8-K SEC Disclosure

Summary

This 8-K filing from NextEra Energy Inc. (NEE), filed on May 23, 2002, discloses a significant event concerning a note receivable from Olympus Communications, L.P. (Olympus), an indirect subsidiary of Adelphia Communications Corp. (Adelphia). The note, totaling approximately $127 million including accrued interest as of March 31, 2002, is secured by a redeemed ownership interest and was due on July 1, 2002. The primary concern for investors stems from recent developments indicating financial distress at both Olympus and its parent company, Adelphia. On May 17, 2002, Olympus announced it missed an interest payment on its senior notes, and Adelphia reported missed interest and dividend payments. These events raise questions about the collectibility of NEE's note receivable from Olympus and potential impacts on NextEra Energy's financial position, although the filing notes Olympus's previous financial strength based on Q3 2001 data. NEE is monitoring these developments.

Key Highlights

1NextEra Energy Inc. (NEE) holds a note receivable from Olympus Communications, L.P. (Olympus) totaling approximately $127 million as of March 31, 2002.
2The note is secured by a pledge of NEE's redeemed one-third ownership interest in Olympus from a 1999 redemption.
3Olympus is an indirect subsidiary of Adelphia Communications Corp. (Adelphia).
4On May 17, 2002, Olympus announced a missed interest payment on its senior notes.
5Also on May 17, 2002, Adelphia announced missed interest and dividend payments.
6The filing acknowledges that Olympus has not filed its 2001 10-K or Q1 2002 10-Q, meaning older financial data may not reflect current conditions.
7NEE is actively monitoring developments related to Olympus and Adelphia, especially in light of SEC investigations into Adelphia's accounting practices.

NEXTERA ENERGY INC 8-K Report (May 23, 2002)

Summary

Key Highlights

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