BayCorp Announces Closing of Seabrook Sale.Business Editors ELIOT, Maine--(BUSINESS WIRE)--Nov. 1, 2002 BayCorp Holdings, Ltd. ("BayCorp") (AMEX AMEX See: American Stock Exchange : MWH See watt-hour. ) announced today that BayCorp and the other selling owners closed the sale of approximately 88% of the Seabrook Nuclear Power Plant ("Seabrook") to FPL Group, Inc. ("FPL Group"). Under the purchase and sale agreement and BayCorp's agreement with Northeast Utilities, BayCorp received approximately $113 million for its 15% ownership interest in the Seabrook plant, nuclear fuel and inventory. This amount is net of the top-off amount BayCorp was required to make to fund its share of the Seabrook decommissioning Decommissioning is a general term for a formal process to remove something from operational status. Some specific instances include:
As part of the sale, BayCorp transferred to FPL Group nearly all of its liabilities associated with Seabrook, including the decommissioning liability, and retains all of its cash and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. in addition to the proceeds from the sale. Other assets of BayCorp include an above-market power sales contract Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. , an equity interest in HoustonStreet, Inc. and expected net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. of approximately $70 million after the sale of the Seabrook interests. Commenting on the sale to FPL Group, Frank Getman, BayCorp's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "This transaction represents the culmination of our efforts to maximize the value for shareholders of our minority non-operating position in the Seabrook nuclear plant. We are pleased to be able to realize significant cash value while simultaneously shedding the Company of virtually all residual liability associated with Seabrook." Regarding future plans for BayCorp, Getman added, "The Board has not made a final decision on the direction of the Company. This has been a fluid process and now that we have successfully closed the Seabrook transaction, we can ascertain with greater certainty the Company's assets and remaining liabilities. The Board is currently reviewing its alternatives and we expect to announce a decision in the near future." About BayCorp BayCorp Holdings, Ltd. is an unregulated holding company incorporated in Delaware. Prior to the sale, BayCorp's wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Great Bay and Little Bay, were electric generating companies whose principal assets consisted of joint ownership in the Seabrook Nuclear Power Plant in Seabrook, New Hampshire Seabrook is a town in Rockingham County, New Hampshire, United States. The population was 7,979 at the 2000 census. Located at the southern end of the coast of New Hampshire on the border with Massachusetts, Seabrook is noted as the location of the Seabrook Nuclear Power Station, . HoustonStreet, Inc., an equity investment of BayCorp, operates HoustonStreet.com, an independent internet-based crude oil and refined products trading exchange. This press release contains forward-looking statements concerning adjustments and liabilities and actions of the Board of Directors of the Company. Factors that may affect future results include future purchase price adjustments, post-sale expenses, and decisions of the Board of Directors. Please review reports filed by BayCorp with the Securities and Exchange Commission for additional information concerning factors that could affect the Company's business. |
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