ML20070A965
| ML20070A965 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 06/27/1994 |
| From: | Polebaum M, Ritsher J HALE & DOOR, NORTH ATLANTIC ENERGY SERVICE CORP. (NAESCO), ROPES & GRAY |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| Shared Package | |
| ML20070A942 | List: |
| References | |
| NUDOCS 9406290221 | |
| Download: ML20070A965 (4) | |
Text
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ROPES & GRAY 1001 PEN NSYLVANI A AVEN U E, N.W.
SUITE 1200 SOUTH ouE iwTc nN4Tionat etect WASHINGTON, D. C. 20004 30 KENNEDY PLAZA noston. wassacwusEtts orno reza Paoviocucc. n. i. c2903 (co} 95i-70oo (dot) 45 5 -4400 troecorva (en) eso soso T t t. ccO PI E R', (2O2)626 3961 T EL ECoPIE R: (401)455-4401 June 27, 1994 United States Nuclear Regulatory Commission One White Flint North 11555 Rockville Pike Rockville, Maryland 20852 Attention:
Document Control Desk
References:
(a)
Facility Operating License No. NPF-86, Docket No. 50-443 (the " Operating License")
(b)
Letter, dated May 14, 1993, from Ropes &
Gray to the Commission (the " Request for Consent to Transfer" or " Request")
(c)
Amendment No. 23 to Facility Operating License No. NPT-86, Docket No. 50-443 (the " License Amendment")
(d)
Order Approving Transfer of License dated August 16, 1993, Docket No. 50-443 (the " Commission's Order")
(e)
Letter, dated February 3, 1994, from Ropes & Gray to the commission (the
" Extension Request")
(f)
Order for Modification of Order Approving Transfer of License, dated February 15, 1994, Docket No. 50-443 (the " Modification Order")
Subject:
Great Bay Power Corporation Plan of Reorganization:
Second Supplemental Status Report and Application for Further Extension of the Commission's Order Gentlemen:
This second supplemental status report and application for further extension of the Commission's Order is filed by North Atlantic Energy Service Corporation
(" North Atlantic"), for itself and as agent for the Joint Owners of Seabrook Station, 9406290221 940627 PDR ADOCK 05000443 p
, Ropes & GRAY United' States Nuclear June 27, 1994 Regulatory Commission Unit No.
1, and the Official Bondholders' Committee (the
" Committee") of Great Bay Power Corporation
(" Great Bay" or
" Debtor") (formerly known as EUA Power Corporation) to update the Commission on the status of the Great Bay bankruptcy proceeding and to request a further extension of the Commission's Order (Ref. (d)).
Background
The Extension Request (Ref. (e)) set forth in detail the background of the bankruptcy proceeding with respect to Great Bay Power Corporation and the evolution of the Debtor's financing plans from a term credit to a $35 million equity infusion.
At the time of the Extension Request the Debtor had just reached an agreement in principal with Omega Advisors with respect to the equity investment and the initial extension of the Commission's Order was requested (Ref. (e)) to allow time for formalizing the agreement, recirculating a revised Disclosure Statement to the creditors and obtaining a reconfirmation of the Plan of Reorganization from the Bankruptcy Court.
These steps were successfully accomplished by May 23, 1994: a Stock and Subscription Agreement, dated as of April 7, 1994, was entered into with Omega Advisors and Elliot Associates, L.P.; a revised Disclosure Statement was circulated to all creditors on April 7, 1994; and the revised Plan of Reorganization was confirmed by the Bankruptcy Court on May 23, 1994, A closing was scheduled for June 15, 1994.
lptervening Events:
On April 9,
1994 Seabrook Station shut down for a scheduled 57 day refueling outage which anticipated coming back on line on June 4, 1994 prior to the scheduled closing.
Three unanticipated events have occurred and have necessitated sequential extensions of the outage until the now scheduled completion date of August 4, 1994.
On June 11, 1994 Omega notified Great Bay that they believed that these events and the outage extension constituted a material adverse change in Great Bay's financial condition because of the potential to adversely affect Great Bay's financial projections.
Omega requested that the closing be delayed while these issues were examined.
Great Bay disagreed with Omega's interpretation of these events and has been in discussions with Omega to resolve their differences.
Unfortunately, that could not be accomplished in time to close during June.
In parallel, Omega has retained independent financial and engineering consultants to evaluate the situation and their reports :ill not be available by June 30, 1994.
c RoPts & GRAY United' States Nuclear June 27, 1994 Regulatory Commission The issue has not been resolved at this point in time and, while Great Bay believes that Omega's consultants will ultimately confirm its position and that the transaction will still be consummated, it clearly will not occur before the Commission's Ordel, as modified, expires.
Therefore a further extension becomes necessary.
Conclusion In order to allow sufficient time for the consultants' reports to be completed and analyzed and to permit Seabrook Station's refueling outage and ancillary repairs to be completed, North Atlantic and Great Bay respectfully request a further extension of the Commission's Order until August 31, 1994.
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- . Ropts & GnAY United' States Nuclear June 27, 1994 Regulatory Commission Should you have any questions, please contact the undersigned, John A.
Ritcher, at (617) 951-7322 or Terry L.
Harpater, Director of Licensing Services, at (603) 474-9521, extension 2 765.
Respectfully submitted, NORTH ATLANTIC ENERGY SERVICE CORPORATION, for itself and as agent as aforesaid By its attorney, M
A41 Johd A. Ritsher, Esc (.
Ropes & Gray One International Place Boston, Massachusetts 02110 THE OFFICIAL BONDFOLDERS' COMMITTEE OF GREAT BAY POWER CORPORATION By its attorney, b
WM Mark N. Polebaum, Esq./
Hale and Dorr l
60 State Street Boston, Massachusetts 02109 J Ak CBNRC. FA i
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