25 Nov 2005
The Power Sector Assets and Liabilities Management Corporation (PSALM) has notified YNN Pacific Consortium Inc. that it has completed all conditions precedent as specified in the asset purchase agreement that the two parties executed after YNN won the bidding for the 600-megawatt Masinloc coal-fired power plant last year.
In its letter dated November 21, PSALM informed YNN that it has complied with all the requirements, including securing the consent of all of National Power Corporation’s creditors for the sale and transfer of the Masinloc plant. These are the Asian Development Bank, the World Bank and the Japan Bank for International Cooperation.
Now that PSALM has complied with all the requirements to effect the sale of Masinloc, YNN has to comply with its conditions precedent and deliver to PSALM a certification, or any written evidence from any acceptable financial institution, that the funds for the upfront payment, rentals and option price are complete and ready for delivery.
YNN immediately acknowledged receipt of PSALM’s notice. “We wish to assure you that we remain committed to completing our closing deliverables under the agreement,” YNN president Sunny Sun wrote to PSALM President Nieves L. Osorio. “We are exerting best efforts to comply with our obligations and conditions for closing in a timely manner.”
Strategic Communications and Partnership Division |