1 August 2002 – Kansas City-based energy group Aquila, Inc. announced Wednesday that recent downgrades of Dynegy’s credit ratings, together with other adverse circumstances and events, have decreased the likelihood that it would go through with its planned purchased of privately held Cogentrix Energy.

Aquila was set to pay $415m plus the assumption of recourse and non-recourse debt for the North Carolina-based independent power producer.

Dynegy’s downgrades by Standard & Poor’s, Fitch Ratings and Moody’s Investors Service are expected to cause a Dynegy subsidiary to default under a sizeable agreement to purchase power from a Cogentrix subsidiary, calling into question the Aquila-Cogentrix agreement.

Aquila signed a definitive agreement on April 29 to purchase 15 Cogentrix combined-cycle power plants in service or under construction.