Laidlaw Energy Group, Inc. Announces Update Regarding the Sale of Its Interest in the Berlin, NH Biomass Facility
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.
