Renewable Energy Company in Trouble

York Research Corp. says it has defaulted on a bond payment of US$10.3 million, and has dismissed its chief executive officer as the company faces a bankruptcy filing.

NEW YORK, New York, US, 2001-11-23 [SolarAccess.com] Creditors of its bankrupt subsidiary, North American Energy Conservation of Syracuse, are deciding if it should file a bankruptcy petition against the head company, say officials of the New York firm.. Chairman and CEO Robert Beningson will be replaced by Robert Paladino, formerly the company’s executive vice president. Collateral for the defaulted portfolio bonds were due on Tuesday and includes York’s interest in its 34 MW windfarm in Big Spring, Texas, its 225 MW natural gas facility in Trinidad, its 286 MW cogeneration site in Brooklyn Navy Yard and its 38 MW cogen facility in Warbasse. It is not clear if the payment affects the 6.6 MW windfarm in west Texas. In March 2000, North American Energy Conservation filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. The Big Spring wind facility has 46 Vestas turbines, including four 1.65 MW units. It has a 15 year power sale to TXU Electric two five year options available. The west Texas facility started commercial operation in June 1999, using four 1.65 MW turbines. At its annual meeting in July, York Research announced plans to develop a 620 MW generating facility in Yuma County, Arizona, using a natural gas combined cycle power plant,supplemented by the company’s patented SEECOT solar energy technology. The SEECOT system uses solar energy to increase overall output during summer peak hours and, by displacing fossil fuel, improves plant competitiveness. The system will also provide a significant amount of solar portfolio credits for use by Arizona utilities and retail service providers as required by Arizona law. It also announced that the government of the Dominican Republic has executed a guarantee of payments for power to be delivered under a previously awarded 30 year power purchase with Corporation Dominicana de Electricidad, the national utility. York is developing a 115 MW wind project in Puerto Plata with initial service planned for next year. When complete, the facility would generate 340 million kilowatt hours of electricity per year. Other opportunities for project development in the area of renewable energy area were discussed, including New Mexico and western New York.
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