Process for Acquisition of Louisiana Pellets

RNS Number : 2744B

Drax Group PLC

03 April 2017

 

3 April 2017

DRAX GROUP PLC

(Symbol: DRX)

Process for Acquisition of Louisiana Pellets

On 27 February 2017 Drax announced that it was participating in auction processes for the acquisition out of bankruptcy of substantially all of the assets of Louisiana Pellets⁽¹⁾ and Texas Pellets⁽²⁾.

Following the conclusion of an auction on 30 March 2017, Drax confirms that it has been provisionally successful in its bid to acquire the assets of Louisiana Pellets. The auction price was $35.4m. A court hearing to approve the auction result is scheduled to take place in early April, with completion of the sale expected by month-end.

The process for the sale out of bankruptcy of the assets of Texas Pellets has been postponed. Drax remains an interested party in the acquisition of these assets.

Enquiries:

Drax Investor Relations:

Mark Strafford

[phone]

Will Gardiner

[phone]

Media:

Drax External Communications:

Paul Hodgson

[phone]

Ali Lewis

[phone]

Website: www.drax.com

Notes:

(1)   Louisiana Pellets, Inc. and German Pellets Louisiana, LLC (collectively "Louisiana Pellets") are currently going through "Chapter 11" bankruptcy processes in the United States and are seeking purchasers for substantially all of their assets.

Louisiana Pellets is the owner and developer of a wood biomass pellet manufacturing facility located in Urania, Louisiana.

(2)   Texas Pellets, Inc. and German Pellets Texas, LLC (collectively "Texas Pellets") are currently going through "Chapter 11" bankruptcy processes in the United States and are seeking purchasers for substantially all of their assets.

Texas Pellets is the owner and developer of a wood biomass pellet manufacturing facility located in Woodville, Texas and leases a five-silo pellet storage facility located at Port Arthur, Texas.

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