News for 'LLEG' - (Laidlaw Energy Group, Inc. Announces Update Regarding the Sale of Its Interest in the Berlin, NH Biomass Facility)
NEW YORK, Sep 16, 2011 (BUSINESS WIRE) -- Laidlaw Energy Group, Inc. (Ticker
"LLEG") (the "Company") announced today that Newco Energy, LLC ("Newco"), an
affiliate of Cate Street Capital of Portsmouth, New Hampshire, has refused to
make a payment of approximately $5,000,000 to Laidlaw BioPower, LLC ("LBP") that
is required under the Purchase and Sale Agreement dated as of August 27, 2010.
The Company and LBP consider Newco's actions unjust and a breach of the express
terms of the purchase agreement and a default under the note issued by Newco to
LBP. The purchase agreement relates to the sale by LBP of its interest in the 75
megawatt Berlin, New Hampshire biomass-fueled electrical power generating
project. The payment to LBP was due contemporaneously with the recent project
finance closing for this project which occurred earlier this month. The Company
is a member of LBP and is owed approximately 50% of such payment. After certain
adjustments, the amount of the payment that the Company should receive is
estimated to be between $2,225,000 to $2,375,000. LBP has commenced the dispute
resolution procedures provided in the purchase agreement. The Company and LBP
believe that Newco does not have a right to withhold such payment and intends to
vigorously pursue all remedies available to them, including instituting binding
arbitration as provided in the purchase agreement.
The Company is disappointed that Newco has failed to pay LBP amounts due under
the purchase agreement and expects that it will ultimately receive its share of
all amounts due under the purchase agreement.
About Laidlaw Energy Group
The Company is engaged in the development of independent power plants that
generate electricity from renewable resources, with a particular emphasis on
biomass power and combined heat and power projects. The Company's mission is to
build and manage a profitable portfolio of generation facilities through the
development of new facilities and the acquisition of existing facilities, and in
so doing become the leading supplier of biomass power in the United States. The
Company is headquartered in New York, New York.
This communication contains statements expressing expectations of future events
and/or results which may include, without limitation, statements concerning
anticipated financial performance, business prospects and similar matters. In
some cases you can identify those so-called "forward-looking statements" by
words such as "may," "will," "should," "expects," "plans," "targets,"
"believes," "anticipates," "estimates," "predicts," "potential," or "continue"
or the negative of those words and other comparable words. Such statements
constitute forward-looking statements made pursuant to the Safe Harbor provision
of the Private Securities Litigation Reform Act of 1995. All statements based on
future expectations rather than historical facts are forward-looking statements
that involve a number of risks and uncertainties, including the resolution of
LBP's dispute with Newco, and the Company cannot provide assurance that such
statements will prove to be correct. The Company undertakes no obligation to
update or revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
SOURCE: Laidlaw Energy Group, Inc.
CONTACT:
Laidlaw Energy Group, Inc.
Edward D. Meyers, 212-480-9882
Vice President -- Investor Relations
Copyright Business Wire 2011
