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New York group joins bidders for Drax share

19 August 2003 – The New York-based energy investment group Miller, Hutchison, Christen & Waffell (MMC) has said it will bid for a share in the Drax power station, which is being sold off by its creditors.

MMC, which was formed last year to acquire interests in distressed power stations in the US and UK, said its interest in the UK’s biggest power plant was sparked by the departure of previous owners AES Corporation, which walked away from Drax after it failed to agree a restructuring plan with creditors.

Last week Goldman Sachs offered £130m ($207m) for 21 per cent of Drax’s debt and a quarter of the votes. International Power has made a bid of £80m for 15 per cent of the debt and management control.

Mining group BHP Billington is reported to be considering a bid for Drax and RWE have been cited as a potential bidder.