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24th July 2003 - International Power said today it had made an offer to AES Drax Holdings Limited to acquire up to 15 per cent of Drax Power Plant's total outstanding debt which stands at around £1.3bn ($2.01bn) and up to 36 per cent of its equity for a maximum of £80m.
Although International Power's offer is at a discount to the face value of the debt, it is at a meaningful premium to the AES offer. In addition, the Company has made an offer to manage the plant for a fee. Drax, at 3960 MW, is the largest power plant in the UK. The coal fired power station is located 25 miles east of Leeds, England.
David Crane, Chief Executive Officer of International Power said, "Prospective involvement with Drax, as creditor, part-owner and manager is of great interest to us as it would represent a good opportunity for us to enhance our existing position in the UK market."
International Power's offer, which is a 30-day offer, is subject to acceptance by AES Drax Holdings Limited, in collaboration with its Secured Creditors pursuant to its proposed financial restructuring.
Last year Drax lost its largest customer following the collapse of TXU Europe.
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