Kværner ASA: Update on the Longview project
2 September 2013 - Kvaerner has been informed that Longview Power LLC, the owner of the Longview Power Plant in Maidsville, West Virginia, has filed for protection under Chapter 11 of the United States Bankruptcy Code.
Kvaerner North American Construction Inc. (a subsidiary of Kvaerner) has been engaged in arbitration proceedings against Longview and other parties to recover the excess costs of construction incurred during the Longview Project.
The Chapter 11 process will halt the arbitration proceedings until the protection is lifted.
The filing under Chapter 11 states that Longview Power LLC is not able to meet the financial obligations towards its lenders. The potential consequences, if any, for the recovery of Kvaerner's direct claims against Longview are currently unknown.
The claims for excess cost incurred on the Project are also filed towards other parties in the project. The initiated Chapter 11 process will interfere with these claims and will lead to subsequent delays in the cost recovery.
In addition to the expected delays, there is still a high degree of uncertainty with respect to the final financial outcome of the project.
ENDS
For further information, please contact:
Investor relations:
Ingrid Aarsnes, SVP Investor Relations, Kvaerner, Tel: +47 67 59 50 46, Mob: +47 950 38 364
Media:
Odd Naustdal, VP Communications, Kvaerner, Tel: +47 53 41 81 03, Mob: +47 905 76 079.
About Kvaerner:
With more than 3 000 HSSE-focused and experienced employees, Kvaerner is a specialised provider of engineering, procurement and construction (EPC) services for offshore platforms and onshore plants. Kværner ASA, through its subsidiaries and affiliates ("Kvaerner"), is an international contractor that plans and realises some of the world's most demanding projects as a preferred partner for upstream and downstream oil and gas operators, industrial companies and other engineering and fabrication contractors.
In 2012, the Kvaerner group had consolidated annual revenues of close to NOK 11 billion and the company had an order backlog of almost NOK 30 billion on 30 June 2013. Kvaerner was publicly listed with the ticker "KVAER" at the Oslo Stock Exchange on 8 July 2011. For further information, please visit www.kvaerner.com.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.