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 2019 times

Comments on Westmoreland reaches agreement to sell Weldon power plant

Latest Comments

Search

Latest Events

Tue Oct 24 @12:00AM
HCSO Deputy Coat Drive
Wed Oct 25 @12:00AM
HCSO Deputy Coat Drive
Thu Oct 26 @12:00AM
HCSO Deputy Coat Drive
Fri Oct 27 @12:00AM
HCSO Deputy Coat Drive
Sat Oct 28 @12:00AM
HCSO Deputy Coat Drive
Sun Oct 29 @12:00AM
HCSO Deputy Coat Drive
Mon Oct 30 @12:00AM
HCSO Deputy Coat Drive
Tue Oct 31 @12:00AM
HCSO Deputy Coat Drive
Wed Nov 01 @12:00AM
HCSO Deputy Coat Drive
Thu Nov 02 @12:00AM
HCSO Deputy Coat Drive

Who's Online

We have 769 guests and no members online

Login Form