Leaf Clean Energy Company Invenergy Update (5563D)
June 27 2019 - 1:00AM
UK Regulatory
TIDMLEAF
RNS Number : 5563D
Leaf Clean Energy Company
27 June 2019
27 June 2019
Leaf Clean Energy Company Final Delaware Chancery Court
Judgement in Invenergy Lawsuit
This announcement provides an update to the Company's 17 June
2019 announcement.
As previously announced, the Delaware Supreme Court ("Supreme
Court") issued its opinion in Leaf Invenergy Company, LLC v.
Invenergy Wind LLC, C.A. No. 308, 2018 (the "Invenergy Lawsuit"),
reversing the Delaware Court of Chancery's ("Chancery Court") prior
award of US$1 in nominal damages to Leaf as a result of Invenergy
Renewables LLC's (formerly known as Invenergy Wind LLC)
("Invenergy") breach of the parties' limited liability company
agreement. The Supreme Court held that Leaf was entitled to damages
in the full amount of its contractually defined Target Multiple
and, therefore, remanded the matter back to the Chancery Court to
enter judgement consistent with its decision. On June 14, 2019, the
Chancery Court entered its nal order and judgement, ordering
Invenergy to pay Leaf US$114.5 million plus interest, which had
accrued from the 2 May 2019 date of the Supreme Court's ruling,
within 10 calendar days of the order.
On June 20, 2019, pursuant to the Chancery Court's nal order and
judgement, Leaf received a payment from Invenergy in the amount of
US$107.2 million, representing the US$114.5 million amount owed on
2 May 2019, plus US$1.3 million of additional interest through 20
June 2019, less US$8.6 million of mandatory tax withholding.
Concurrently with the provisioning of the aforementioned payment,
Invenergy notified Leaf by letter that it intends to appeal the
final order and judgement. As of today, no appeal has been filed.
Leaf believes that an appeal would lack merit and be frivolous. In
anticipation of what the board hopes will be a speedy resolution of
what it believes would be yet another attempt by Invenergy to avoid
its obligations under the limited liability agreement, and in order
to minimize currency risk with respect to what the board expects
will be an eventual distribution to the shareholders, the Company
has converted a substantial portion of the payment into pounds
sterling and currently holds GBP77.2 million of its cash
denominated in GBP.
Invenergy has until 15 July to file any appeal. While the timing
for resolving an appeal by Invenergy is uncertain, the board will
earnestly endeavor to return capital to shareholders as soon as is
practical. The board hopes this will be achieved by the end of
2019.
The Leaf Board will revert to the shareholders on the appeal
process and timing when the amounts received from Invenergy will be
distributed.
For further information please contact:
Mark Lerdal +1 (415) 264-5096
Leaf Clean Energy Company
Nicholas Wells/Callum Davidson +44 (0) 207 397 8980
Cenkos Securities plc
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END
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