UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549



                                    FORM 8-K

                            Current Report Pursuant
                         to Section 13 or 15(d) of the
                        Securities Exchange Act of 1934

       Date of report (Date of earliest event reported): October 13, 1999


                              KENETECH CORPORATION
             (Exact Name of Registrant as Specified in Its Charter)


                                    Delaware
         (State or Other Jurisdiction of Incorporation or Organization)


              33-53132                                94-3009803
       (Commission File Number)                    (I.R.S. Employer
                                                Identification Number)


    500 Sansome Street, Suite 410
      San Francisco, California                          94111
  (Address of Principal Executive Offices)            (Zip Code)


                                 (415) 398-3825
              (Registrant's Telephone Number, Including Area Code)




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Item 5.  Other Events.

     KENETECH Corporation OTCBB: KWND announced today that the Court of Chancery
of the State of  Delaware  entered  judgment  in favor of  KENETECH in an action
brought  by former  holders  of its  preferred  stock.  In the  action-captioned
Quadrangle  Offshore  (Cayman)  LLC and  Cerberus  Partners,  L.P.  v.  KENETECH
Corporation,  plaintiffs  alleged,  among other things, (1) that KENETECH was in
liquidation and had been in liquidation prior to the mandatory conversion of the
preferred  stock on May 14,  1998,  (2) that the  plaintiffs  were  entitled  to
receive  a  liquidation  preference  for each  share of  preferred  stock in any
distribution  KENETECH  might make, and (3) that KENETECH had acted in bad faith
with respect to the holders of preferred stock.  Vice Chancellor Myron T. Steele
ruled in favor of  KENETECH  on all counts and  denied the relief  requested  by
plaintiffs.

     Mark Lerdal,  President and CEO of KENETECH stated, "The Company is pleased
with the Court's decision. We can now move forward with this cloud removed."

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.


                                      KENETECH Corporation
                                      (Registrant)


Date:   October 14, 1999              By: _________________________________
                                           Mark D. Lerdal
                                           President and Chief Executive Officer






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