TORONTO, Jan. 14, 2021 /CNW/ - Stoneway Capital Corporation ("Stoneway," and together with its subsidiaries and parent entities, the "Company") is in current negotiations with MSU Energy S.A. (together with its affiliates, "MSU") in order to enter into a long-term contract operating agreement regarding the Company's operating subsidiaries in Argentina (the "Operating Companies") to oversee all technical and commercial operations of the Company.
In the context of such negotiations, MSU has begun to supervise technical and commercial operations of the Operating Companies and has assisted, and is expected to continue to assist the Operating Companies, in assessing the critical issues currently faced by the Operating Companies, particularly concerning regulatory framework and approvals and industry best practices, and designing and submitting to the Operating Companies a short-term strategy in connection therewith.
MSU collaboration with the Operating Companies has already shown certain substantial operational improvements, including (i) the implementation of a short term reserve service for San Pedro, Luján and Las Palmas Plants, which resulted in additional revenues that already exceed the income corresponding to energy dispatch, (ii) the recognition of a 2 MW increase in Las Palmas Plant capacity by CAMMESA, and (iii) a US$3.3 million reduction in penalties applied to Matheu Plant (corresponding to hours when the units would not have been called for dispatch).
In addition, MSU is supporting the Operating Companies' management in the negotiation of an amendment to the existing turnkey construction contract with Siemens Energy, Inc. and Siemens S.A. regarding the steam bottoming cycle generation plant to be interconnected to the existing simple cycle at the San Pedro Plant.
Upon the execution of a long-term contract operating agreement, MSU is expected to play a key role in the management of the Operating Companies, by running the Operating Companies' day-to-day operation and supervising the operation and maintenance of the Operating Companies' generation plants according to the industry best practices and MSU's strong know-how of the power industry.
MSU specializes in thermal generation in Argentina and owns and operates three power generation plants with a total available capacity of 750 MW (http://msuenergy.com/en/).
The Company's principal business is the construction, ownership and operation of power generation facilities located in Argentina.
FORWARD LOOKING STATEMENTS: Certain information contained in this press release may contain forward looking statements within the meaning of applicable securities laws. The use of any of the words "continue", "plan", "propose", "would", "will", "believe", "expect", "position", "anticipate", "improve", "enhance" and similar expressions are intended to identify forward-looking statements. More particularly and without limitation, this document contains forward-looking statements concerning: the holding and timing of, the provision of additional information relating to, and matters to be considered at, the Noteholders' Meeting.
Forward-looking statements necessarily involve risks, including, without limitation, risks associated with the ability of the Company to implement the Transaction on the terms described in this press release and in previous announcements, the ability of Stoneway to receive all necessary court, third party and stakeholder approvals in order to complete the Transaction; the matters to be considered and voted on at the Noteholders' Meeting; the ability of the Company to operate in the ordinary course during the proceedings under the Canada Business Corporations Act, including with respect to satisfying obligations to service providers, suppliers, contractors and employees; the ability of the Company to continue as a going concern; the ability of the Company to continue to realize its assets and discharge its liabilities and commitments; the Company's future liquidity position and access to capital to fund ongoing operations and obligations (including debt obligations); and the ability of the Company to stabilize its business and financial condition.
Although the Company bases its forward-looking statements on assumptions believed to be reasonable when made, they are not guarantees of future performance and actual results of operations, financial condition and liquidity, and developments in the industry in which the Company operates, may differ materially from any such information and statements in this news release. Other unknown or unpredictable factors also could harm the Company's future results. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this news release are made only as at the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law.
SOURCE Stoneway Capital Corporation
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