CB&I filed in the Court of Chancery in the state of Delaware on Thursday, according to Reuters. The complaint claims that Westinghouse improperly used a provision of the purchase agreement to justify its $2 billion figure. CB&I says the provision Westinghouse used was supposed to hash out working capital expenses between the signing of the sale agreement in October 2015 and the closing of the deal the following December. Reuters said that after closing the deal, CB&I calculated working capital expenses of $428 million in their favor, while Westinghouse claimed CB&I owed them $2 billion.
CB&I finalized the sale of its Stone & Webster unit to Westinghouse at the end of 2015 for $229 million. The deal settled numerous lawsuits between the two companies over cost overruns and delays at the Plant Vogtle nuclear expansion project in Georgia and the Summer expansion project in South Carolina. Westinghouse continues to build two AP1000 reactors each at both plant sites.
“Over the course of the past several months, the two parties have been faithfully following the process explicitly set out in the Purchase Agreement between them. It is therefore troubling that CB&I, after agreeing to and actively participating in that process, is seeking to disrupt it,” said Westinghouse Senior Vice President and General Counsel Michael Sweeney. “Nevertheless, we are confident that the transaction will be fully concluded in accordance with the Parties Purchase Agreement.”
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