| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for Mirant Corp. > News item |
Mirant seeks court approval to sell three turbines for $46.5 million to Invenergy
By Jeff Pines
Washington, Oct. 14 - Mirant Corp. said Invenergy Turbine Co. LLC is offering it $46.5 million for three turbines, subject to adjustments. The Atlanta-based energy company asked the U.S. Bankruptcy Court for the Northern District of Texas Wednesday to approve bidding procedures for the turbines.
After a downturn in the energy market, Mirant's management said it decided not to proceed with the project the turbines were intended for. To recoup as much as the company could, management decided to sell the turbines. If it does not sell the turbines, it will cost Mirant about $2.5 million this year to maintain them.
The sale agreement does enable others to bid on one or more of the turbines instead of requiring them to bid on all three, the company said.
Under the agreement, if Mirant sells a turbine to another bidder, Invenergy agreed to buy the other two for $31 million. If Mirant sells two turbines to other bidders, Invenergy has the option to buy the third turbine for $15.5 million.
Mirant wants the competing bids for all three turbines to start at $48.645 million, at $33 million for two and at $16.5 million for one turbine. Subsequent bids would be in increments of at least $100,000.
The company wants competing bids due on Nov. 29.
As an inducement for Invenergy to sign the agreement, Mirant is asking the court to approve a $1.395 million fee for Invenergy if Mirant sells two or more turbines to another bidder and a fee of $697,500 if it sells one turbine to a third party. The court also approved expenses for Invenergy of up to $600,000 depending upon whether Mirant sells three turbines or fewer to another bidder.
Mirant filed for bankruptcy on July 14, 2003. Its Chapter 11 case number is 03-46590.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.