Wednesday, 09 August 2017 16:00

Westmoreland reaches agreement to sell Weldon power plant

Written by 
Rate this item
(0 votes)

Westmoreland Coal Company has entered into an agreement to sell the Roanoke Valley Power Facility in Weldon, it said in a news release on its website.

The announcement was posted on August 3 and the company describes the transaction as a definitive agreement to sell ROVA for $5 million in cash to a company called ROVA Venture LLC.

“In December 2016, we amended our ROVA contract, relieving us from the obligation to operate the plant. This allowed us to more aggressively pursue the sale that we are announcing today. Additionally, we continue to anticipate the return of approximately $10 million of cash collateral this year related to ROVA power contracts,” said Kevin Paprzycki, Westmoreland’s CEO. “Our team did a great job executing this transaction and maximizing the realized value for the asset. This sale and the collateral return are meaningful steps towards our 2017 goals of achieving final resolutions on our two non-core assets and strengthening our balance sheet.”

The closing of the transaction, subject to customary terms and conditions, is expected to occur on or before September 30.

The sale includes all the assets of ROVA.

Westmoreland will retain approximately $2.7 million of reclamation liabilities related to offsite ash storage.

Cathy Scott, executive director of the Halifax County Economic Development Commission, could not offer details on whether ROVA Venture LLC will use the Weldon facility in the same manner as Westmoreland. “We hope this is good news for the facility and we hope the purchasers will see the value of reuse of this facility for years to come,” she said.

Talks of closing the facility first began to surface in 2013.

Read 2310 times

Comments on Westmoreland reaches agreement to sell Weldon power plant


Latest Events

Thu Feb 15 @10:00AM - 04:00PM
Library book sale
Wed Feb 21 @10:30AM -
Story time on Wednesdays
Thu Feb 22 @11:00AM -
HCC Food Tasting
Wed Feb 28 @10:30AM -
Story time on Wednesdays
Tue Mar 06 @ 6:30PM -
Democratic party meeting
Sat Mar 10 @11:00AM - 01:00PM
Hope, Help, Healing
Fri Mar 16 @10:00AM - 02:00PM
Weldon PD blood drive
Thu Mar 22 @ 8:30AM - 05:00PM
Clara Hearne pre-K registration
Fri Mar 30 @12:00AM
Artisans, crafters needed for fair
Sat Mar 31 @12:00PM -
Project Graduation Boston Butt, stew sale

Login Form