Reliant Energy Channelview seeks approval of $10 million steam supply dispute settlement

By Caroline Salls

Pittsburgh, Nov. 16 - Reliant Energy Channelview, LP requested court approval of a steam supply agreement dispute settlement with Equistar Chemicals, LP, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, the dispute arose from the calculation of steam agreement damages resulting from a March 1, 2006 outage.

Equistar filed a lawsuit seeking an estimated $37 million in damages.

Reliant said it later told Equistar that it planned to sell its business, and the company asked Equistar to cooperate with the sale process.

As a result, the parties settled the dispute.

Under the settlement, Reliant will pay $10 million to Equistar within three days of the sale closing. The sale must close by Dec. 31.

In exchange, Equistar has agreed to drop its lawsuit against Reliant.

A hearing is scheduled for Dec. 10.

Houston-based Reliant Energy provides electricity and energy services. The company filed for bankruptcy on Aug. 20. Its Chapter 11 case number is 07-11160.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.