Georgia Power Co. has taken issue with Westinghouse Electric Co.’s proposed $800 million bankruptcy loan, saying the financing could threaten the construction of the first new nuclear reactors to be built in the U.S. in decades, the Wall Street Journal reported yesterday. Westinghouse filed for chapter 11 bankruptcy at the end of March and wants to borrow money to keep its other businesses healthy while it contends with the fallout of nuclear construction projects that are years behind schedule and billions of dollars over budget. With a deadline looming today for Georgia Power to decide whether to continue construction at the Vogtle Electric Generating Plant, it and other plant owners are protesting Westinghouse’s efforts to pledge intellectual property as collateral for the loan deal. If Westinghouse’s bankruptcy loan goes through as planned, the company’s lenders would be in position to “foreclose on the intellectual property, which could seriously disrupt or even potentially halt construction,” lawyers for Georgia Power, the largest subsidiary of Southern Co., warned in a court filing.
The State Cabinet approved a draft law on corporate bankruptcy and prevention at an ordinary session chaired by the Prime Minister and Interior Minister, Zawya reported yesterday. The Ministry of Economy and Commerce prepared the draft law aiming at improving the investment environment in the state. The law aims at developing a detailed regulation of the provisions of corporate bankruptcy and prevention, taking into account international standards in this regard. The Cabinet also approved a draft law regulating competition and its draft executive regulation.