ML20070D423
| ML20070D423 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 06/30/1994 |
| From: | Russell W Office of Nuclear Reactor Regulation |
| To: | NORTH ATLANTIC ENERGY SERVICE CORP. (NAESCO) |
| Shared Package | |
| ML20070D428 | List: |
| References | |
| NUDOCS 9407080082 | |
| Download: ML20070D423 (5) | |
Text
1 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of
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Docket No. 50-443 NORTH ATLANTIC ENERGY SERVICE
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(License No. NPF-86)
CORPORATION
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(Seabrook Station, Unit No. 1)
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ORDER FOR MODIFICATION OF ORDER APPROVING TRANSFER OF LICENSE I.
Great Bay Power Corporation, formerly EUA Power Corporation, is the holder of a 12.1324 percent ownership share in Seabrook Station, Unit No. 1.
Great Bay Power Corporation's interest in Seabrook Station, Unit No. 1, is governed by License No. NPF-86 issued by the U.S. Nuclear Regulatory Commission (NRC),
pursuant to Part 50 of Title 10 of the Code of Federal Regulations (10 CFR Part 50), on March 15, 1990, in Docket No. 50-443.
Under this license, only North Atlantic Energy Service Corporation, acting as agent and representative of the 11 joint owners listed in tha license, has the authority to operate Seabrook Station, Unit No. 1.
Seabrook Station, Unit No. 1, is located in Rockingham County, New Hampshire.
II.
The transfer of any right under License No. NPF-86 is subject to the NRC's approval pursuant to 10 CFR 50.80(a).
By letter of May 14, 1993, from its counsel, Ropes & Gray, Forth Atlantic Energy Service Corporation filed two requests with the NRC. One requested NRC approval of the indirect transfer of control of EUA Power Corporation's 12.1324 percent ownership share 94070B0082 940630 PDR ADOCK 05000443 G
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. in Seabrook Station, Unit No. 1.
The other requested an amendment to the Operating License to reflect EUA Power Corporation's change of name to Great Bay Power Corporation.
The name of EUA Power Corporation was formally changed to Great Bay Power Corporation in February 1993 following the redemption of-all outstanding stock in EUA Power Corporation from its corporate parent, Eastern Utility Associates.
Following the redemption of its outstanding stock, EUA Power Corporation was no longer a subsidiary of Eastern Utility Associates, and the name was changed to remove any implication of a continuing relationship with its former corporate parent. The name change did not affect-the corporate entity of the debtor in bankruptcy. An indirect transfer of i
l ownership occurs with the elimination of the existing stock of the debtor (now known as Great Bay Power Corporation) and the issuance of new stock to others.
i On August 16, 1993, the NRC issued Amendment 23 to License No. NPF-86 that L
incorporated the name change cf EUA Power Corporation to Great Bay Power Corporation in the footnote to page 1 of the operating license-and issued an' order approving the indirect transfer of the ownership interest of EUA Power Corporation.
The order was contingent on the transfer of control being completed no later than February 15, 1994, and included the provision that-upon application and showing of good cause, the order may be extended for a a
short~ period beyond Febi.ary-15, 1994.
1 On February 3, 1994,-North Atlantic Energy Service Corporation, through their counsel Ropes- & Gray, filed an application requesting extension of the Order until June 30, 1994, and identified the reasons why the transfer of control could not be completed by Febaary 15, 1994.
In that applicati9n, it was asserted that the sole obstacle to final implementation of the Plan of-
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. Reorganization was the difficulty with completing the contemplated $45 million credit facility for the source of funds to cover Great Bay Power Corporation's cash requirements.
In lieu of this credit facility, the debtor's bondholders entered into an agreement in principle with Omega Advisors that provided for an investment of $35 million by Omega Advisors in exchange for 60 percent equity in Great Bay Power Corporation.
This agreement, reached on February 2, 1994, was a modification to the Plan of Reorganization and additional time was required to formalize the agreement, recirculate a revised Disclosure Statement to the creditors, and obtain reconfirmation of the revised Plan of Reorganization from the Bankruptcy Court.
On February 15, 19 B, the NRC issued an Order which modified the August 16, 1993, Order Approving Transfer of License by extending the expiration date to June 30, 1994. On April 7, 1994, a Stock Subscription Agreement was entered into with Omega Advisors and Elliot Associates, L.P.,' and a revised Disclosure Statement was circulated to all creditors.
The Revised Plan of Reorganization was confirmed by the Bankruptcy Court on May 23, 1994, and a closing of the transaction was scheduled for June 15, 1994.
However, on June 11, 1994, Omega Advisors notified Great Bay Power Corporation that unantic!;,ated events leading to the delay in the completion of the Seabrook Station, Unit No. I third refueling outage from early June 1994 until early
'On April 14, 1994, Ropes & Gray submitted a status report on behalf of North Atlantic Energy Service Corporation and a copy of the Supplemental Disclosure Statement.
That statement disclosed that in addition to Omega Advisors, Elliot Associates, L.P., would participate in the acquisition of an aggregate of 60 percent of Great Bay Power Corporation's equity securities.
Previously, Omega Advisors was identified as the sole participant in the equity financing.
The stock purchase agreement disc 1oses that the Omega entities will purchase 49 percent of the equity position and Elliot Associates will purchase the remaining 11-percent.
. August 1994 has the potential to adversely affect Great Bay Power Corporation's financial projections, and the delay constitutes a material adverse change in Great Bay Power Corporation's financial condition.
Omega Advisors requested postponement of the scheduled closing while the impact of these events could be assessed by independent financial and engineering consultants retained by Omega Advisors.
Because these evaluations will not be available by June 30, 1994, North Atlantic Energy Service Corporation has requested further extension of the Order until August 31, 1994.
On the basis of the information in North Atlantic Energy Service Corporation's application (Ropes & Gray letter dated June 27, 1994), I find good cause to extend the expiration date of the Order Approving Transfer of License dated August 16, 1993.
III.
Accordingly, pursuant to Sections 161b, 1611, and 184 of the Atomic Energy Act of 1954 (as amended), 42 USC 2201 et seq., and 10 CFR 50.80, IT IS HEREBY ORDERED that:
the Order Approving Transfer of License dated August 16, 1993, is modified to change the latest date for completion of the transfer, as specified in Section Ill of the August 16, 1993, Order, to August 31, 1994.
The Order of August 16, 1993, except as modified hecein, remains in effect.
FOR THE NUCLEAR REGdLATORY COMMISSION Original signed t'/:
Willi'm T. Russell, Director Offici of Nuc car Reactor Regulation Dated at Rockville, Maryland this 30th day of June 1994
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.. August 1994 has the potential to adversely affect Great Bay Power Corporation's financial projections, and the delay constitutes a material adverse change in Great-Bay Power Corporation's financial condition.
Gmega Adsisors requested postponement of the scheduled closing while the impact of these events could be assessed by independent financial and engineering consultants retained by Omega Advisors.
Because these evaluations will not be available by June-30, 1994, Nort!
.lantic Energy Service Corporation has requested further extension of the Order until August 31, 1994.
On the basis of the information in North Atlantic Energy Service Corporation's application (Ropes & Gray letter dated June 27,1994),Ifind) good cause to extend the expiration date of the Order Approving Transfer of License dated August 16, 1993.
III.
Accordingly.. pursuant to Sections 161b,1611, and 184 of the Atomic Energy Act of 1954 (as amended), 42 USC 2201 et seq., and 10 CFR 50.80, IT IS HEREBY ORDERED that:
the Order Approving Transfer of License dated August 16, 1993, is modified _to change the _ latest date for completion of the transfer, as specified in Section III of the Augua 16, 1993, Order, to August 31, 1994.
The Order of August 16, 1993, except as modified herein, remains in effect.
FOR THE NUCLEAR REGULATORY COMMISSION 4)& T.,W William T. Russell, Director Office of Nuclear Reactor Regulation
. Dated at Rockville, Maryland this 30th day of June 1994
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