Longview Power settlement approved; Foster Wheeler to repair boiler

By Kali Hays

New York, March 7 - Longview Power, LLC's settlement with Foster Wheeler North America Corp. has been approved, according to an order filed with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Foster Wheeler agreed to design and build Longview a coal-fired boiler for its power plant in January 2007.

The companies entered into a legal dispute in December over Longview's allegations that the construction and operation of the boiler has been problematic and left unrepaired. Foster Wheeler filed a $16.82 million proof of claim against Longview, and Longview asserted roughly $58 million in contingent claims against Foster Wheeler.

Under the settlement, Foster Wheeler will be responsible for repairing the boiler and all costs incurred in the process and will release the claims filed against Longview. Foster Wheeler is also required to support Longview's objectives in its Chapter 11 cases going forward.

Objections to the settlement made by Siemens Energy, Inc. and Kvaerner North America Construction, Inc. were overruled.

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

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