Westinghouse Electric Co LLC and Chicago Bridge & Iron Co NV squared off in Delaware Supreme Court on Wednesday in a $2 billion dispute over the huge nuclear power plant cost overruns that led Westinghouse to file for bankruptcy in March. The two sides are sparring over a 2015 deal in which Chicago Bridge & Iron, or CB&I, sold Westinghouse its Shaw nuclear construction business. Westinghouse paid nothing up front, but agreed to accept all liabilities related to cost overruns at two power plants Shaw was building in partnership with Westinghouse in Georgia and South Carolina. The deal was meant to get the two power plant projects back on schedule. Shaw was spending millions of dollars weekly on construction, and between the deal signing and closing, the two sides agreed to adjust the purchase price after closing. The price would account for changes in Shaw’s cash position, among other fluctuations in the business. Westinghouse said last year CB&I owed it $2 billion. CB&I, on the other hand, estimated it was owed $428 million and in July sued Westinghouse, which is majority owned by Toshiba Corp of Japan. CB&I argued Westinghouse was improperly lowering the purchase price by citing liabilities that were disclosed when the deal was agreed.
Reuters 3rd May 2017 read more »