Drax successful in bid to acquire Louisiana Pellets
Drax confirms that it has been provisionally successful in its bid to acquire the assets of Louisiana Pellets. The completion is pending court approval.
UK power major Drax Group has announced that it has been “provisionally successful” in its bid to acquire the assets of Louisiana Pellets, one of the two US “Chapter 11” bankruptcy auctions that it is participating in for the acquisition of the operating assets of the German Pellets subsidiaries, Texas Pellets in Woodville, Texas and Louisiana Pellets, Urania, Louisiana.
According to a statement, the Louisana Pellets auction was concluded March 30 and the auction price was US$35.4 million. A court hearing to approve the auction result is scheduled to take place in early April, with the completion of the sale expected by month-end.
The process for the sale out of bankruptcy of the assets of the second German Pellets facility, Texas Pellets has been postponed. Drax has stated that it remains an interested party in the acquisition of these assets.