Replies to post #101203 on Laidlaw Energy Group, Inc.(fka LLEG)

[TenKay]

I've heard, but have not been able to verify, that the agreement was for LLEG to receive $5 million total, half last year and half when the financing was completed

But the PR states that the $5 million was due to LBP and that as a "member" of LBP, LLEG was due 50% of that. I guess one could say that they are referring to a "second" payment (I.e. There was an initial $5 million payment that LLEG got 50% of)... but if that was the case you would expect the PR to be little more explicit on that front.

At the moment I will stick with my view that LLEG only had a 50% interest in a $5 million Note and that they have no cash in the bank from this deal.

...but as always, who really knows except MBB.

[CivilStruct]

If the engineering is WHY CSC is withholding the money, that is wrong. You don't get to withhold money because you decide to value engineer a project.

Assuming Matt's values were correct (http://investorshub.advfn.com/boards/read_msg.aspx?message_id=52472941&txt2find=REC), then first of all, LLEG sold them a project with up to $35M per year of free money in tax credits for what appears to be a measly $5M lump sum payment. That stinks on the surface. Secondly, Cate can't withhold the $ from LLEG, because their decision to do Value Engineering increased the capacity to 75MW from 65MW when it was sold to them, giving them an extra $5M per year of free money.

This whole thing bothers me.

[DragonBear]

I've heard, but have not been able to verify

That's a very interesting rumor CTTC. Most of the info you are receiving seems to be on target.

Picking up all the bread crumbs...

The first payment $3.7M. Probably investment or stake by LLEG early in the project (e.g. buying the 13 yr old broiler) was $1.2M, and bought out by Cate. Subtract out from the $3.7M, and you have the two $2.5M payments.

The second part of your story on re-engineering thickens the soup. You have Cate agreeing to pay LLEG $5, not only for the bureaucracy (where $5M is sort of expensive paper pushing), but also for engineering a solution. After all everyone knows Bart is an expert due to his past experience of running an electric producing plant. For whatever reason it doesn't fly, and Cate now has to turn around and hire in a new engineering firm (B&W?). Maybe this was the time period when the plant MW output goal was increased? End result they deduct off the additional engineering expenses from the final payment.

Presumably Cate will defend its position by indicating LLEG&HOMELAND muffed it, causing Cate higher expenses. Trot out B&W to support their position. Extremely weak position for LLEG to be protesting. I see there is the suggestion by Matt, a lawsuit over the difference will be worth the missing millions to LLEG? Not a chance.

[discreet_suffolk]

updated...If you go to the ford dealer and buy a mustang and then realize it has a 6 cylynder can I withhold payment because it looks fast but the power is not there.

remember the plant was only 64MW in the beginning, they redesigned the plant for more MW

We realy need to see the agreement.