Replies to post #101305 on Laidlaw Energy Group, Inc.(fka LLEG)

[CTTC]

Wasn't that why Homeland Renewable Energy was given a share of Laidlaw Berlin BioPower(LBB)as compensation for doing most of the bull work of applying? They were the ones with the permiting background I thought. When Cate Street bought out LBB they paid off both Homeland and LLEG. LLEG's share was the $5 million. We never knew what Homelands share was. At least that was my take on the whole deal. I imagine North Star Energy and Novus Energy also received a payment. See
http://investorshub.advfn.com/uimage/uploads/2009/12/19/hrlfpflowchart1.png

[CTTC]

The bottom line here Matt is LLEG thinks they deserve $5 million, of which they have supposedly already received half. Cate Street sees the deal differently. This will either be played out in the courts or settled quietly between LLEG and Cate Street but the total payment will still be $5 million, or less depending on how things go.

The worst possible case is the courts where this could hang on for years. Look at the Ellicotville suit. The problem is the longer this drags on the more of the $5 million is going to be eaten up by lawyers fees. Another problem is the money LLEG must be spending to clear up its other problems.

Here is an interesting article I just found on the business wire:

NEW YORK--(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.

[DragonBear]

I think that you have forgotten that LLEG's application

Not at all Matt.

My position has been very clear. Whoever takes the greatest risk, provides the greatest resources to a project, deserves the profits of that project as its owner.

If in 2008 Cate walks away the project is likely dead. At the very least it might take a long time to find another with their ability to finance the project. If in 2008 LLEG is told to get out of the way, they could have been replaced in short order.

And it doesn't matter if the work was grueling with overtime hrs. They were contracted in to provide that service. The only thing a stockholder should be concerned about is the bottom line - how much accrued value was added to the common stock.