One of the owners, Horizon Energy, told the market the key issue facing the generator was a $500 million debt due next May.
Horizon said modelling suggested the power station will not breach any technical default hurdles on its senior debt prior to the $500 million bullet repayment due in May 2003. However the owners had started discussions with senior lenders on restructuring its debt, which totals about $3.5 billion.
"At this stage, the LYP partners believe it is likely to require a significant capital injection," Horizon said.
The 2000 megawatt generator and brown coal mine was privatised by the Kennet Government in 1997 for $4.8 billion however it is generally agreed that the owners - CMS Energy, Horizon Energy and NRG Energy paid too much.
Big Belgian utility Tractabel is seen by many in banking and industry circles as a potential buyer for the cash-strapped power station.
