Longview Power ordered into mediation with Foster Wheeler, contractors

By Kali Hays

New York, March 7 - Longview Power, LLC has been ordered into mediation with Foster Wheeler North America Corp., Kvaerner North America Construction, Inc. and Siemens Energy, Inc. to explore possible settlement options, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The co-mediators will be attorney Kenneth Gibbs and judge Raymond T. Lyons.

As previously reported, Longview has been in legal proceedings regarding operations issues and longstanding disputes with contractors Kvaerner, Siemens and Foster Wheeler stemming from a coal-fired boiler that Foster Wheeler agreed to build for Longview in January 2007.

On Dec. 13, Foster Wheeler filed a $16.82 million proof of claim against Longview, which includes a $14.83 million mechanics' lien, while Longview asserted roughly $58 million in contingent claims against Foster Wheeler, plus more than 150 direct warranty claims.

The ordered mediation is planned to take place between March 27 and March 28 in New York City and will conclude within 10 days unless otherwise agreed to by all parties, the order stated.

The discussions that take place during mediation are granted absolute privilege and may not be used for any purpose outside mediation discussion, and any agreement reached is non-binding until put in writing.

Longview, an integrated power generation enterprise based in Maidsville, W.Va., filed for bankruptcy on Aug. 30, 2013. The Chapter 11 case number is 13-12211.

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