Merrill, Reliant Squabble Over $300M Credit Deal

Law360, New York (December 30, 2008, 12:00 AM EST) -- Reliant Energy Inc.'s plan to reduce capital expenses and pull out of the retail power business hit a snag Monday when Merrill Lynch & Co. Inc. filed a lawsuit alleging the energy provider defaulted on a credit agreement.

Merrill's lawsuit, filed in the Supreme Court of the State of New York, says any exploration of strategic alternatives by Houston-based Reliant to divest its retail energy business requires consideration of Merrill's rights under agreements between the companies.

In December 2006, Merrill agreed to lend Reliant up to...
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