Longview Power approved settlement with Foster Wheeler draws appeal

By Kali Hays

New York, March 21 - Longview Power, LLC's approved settlement agreement with Foster Wheeler North America Corp. has drawn an appeal by Kvaerner North American Construction Inc., according to a Friday filing with the U.S Bankruptcy Court for the District of Delaware.

Kvaerner previously filed an objection to the settlement under seal. In a later filing, Kvaerner said its request for documents demonstrating that the settlement was reasonable was left unfulfilled.

A court overruled the objection during the approval hearing held March 7.

As previously reported, Longview and Foster Wheeler entered into a legal dispute in December over Longview's allegations that the construction and operation of a boiler by Foster Wheeler 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 is responsible for repairing a 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.

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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