ML19310A744
| ML19310A744 | |
| Person / Time | |
|---|---|
| Site: | BWX Technologies, 07001201, 07000364, 07000824, 07000135 |
| Issue date: | 03/28/1980 |
| From: | Jordan L BABCOCK & WILCOX CO. |
| To: | Martin J NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| References | |
| 16023, NUDOCS 8006230072 | |
| Download: ML19310A744 (3) | |
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n P.O. Box 61038, New Orleans, t.a. 70161 Babcock &Wilcox roi.pnoo. (3043 sa7 4411
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T Mr. John B. Martin Assistant Director b /j. g @
Fuel Cycle Safety and Licensing Dtvision of Fuel Cycle and Material Safety United States Nuclear Regulatory Commission Washington, D. C.
20666 Re: License Numbers SNM-42, SNM-145, SNM-414, SNM-778 and SNM-1168 -
Financial Assurance for Payment of Decommissioning Costs
Dear Mr. Martin:
In a letter dated March 13, 1978, Mr. George G. Zipf, then President of the Babcock & Wilcox Company, stated that continuing assurance of Babcock & Wilcox's ability to cover the costs of decommissioning all its nuclear facilities would be provided to you.
The nature of these assurances would be first; a copy of an Officer's Certificate to the Company's lenders, under certain Promissory Note Agreements, that the Company has met all restrictive covenants contained in the Note Agreements and second; that periodically, the Company would measure the cost of decommissioning its nuclear facilities to insure that they did not exceed the Company's working capital.
Attached is a copy of this Certificate signed by 1&. John A. Lynott, Executive Vice President-Finance and Robert A. Jolliff, Treasurer, dated March 10, 1980 for the year then ended March 31, 1979.
In addition, the Company's working capital, at that date, was significantly in excess of the estimated cost to decocnission its nuclear facilities.
The lateness of the officer's certificate relating to year end March 31, 1979 was due to the combination of Babcock & Wilcox Co. and J. Ray McDermott, Inc.
Effective March 31, 1978, the Babcock & Wilcox Company was acquired by J.
Ray McDermott, Inc., as a wholly owned subsidiary. The combination has been accounted for as a purchase acquisition.
In a purchase acquisition, the assets and liabilities of the acquired company are " fair valued" which gives certain of them a dif ferent value then they have under a historical cost basis.
It was unclear under the circumstances of the acquisition as to what basis the financial statements and the various tests under the Noteholders Agreements should be prepared. This question was only recently resolved by mutual understanding between the company and its Noteholders.
80062300 7 The Babcock & Wilcox Company / Established 1867 oC43
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. Babcock &WilC0K PAGE 2.
If you have any questions related to this ' submittal, please advise us.
Very truly yours, THE BABC0CK & ~ WILCOX COMPANY
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%f Leo V Jordan Assistant Controller LVJ/da attachment 9
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t:e, the undersigned do hereby certify, pursuant to Section 7 (D),
of page 7 of the Note Agreement dated January -1, 1977 relating to the Company's 8-1/2% Promissory Notes due January 1,1997, entered into between you and the Company, that there exists no default or event of default as defined in section thereof, during the fiscal year ended
-March'31, 1979.
In witness whereof we have hereunto set our han'd this 10th day of March,-1980.
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xe,cutive Vice,Lynott President-Finance
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. The Ew.o:k t.'ti;te x C:mpany / Estattkhed 1867 Rf 09,3
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