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respect to the loan guarantee arrangement. DOE was especially
concerned about how the project would be funded if the partners
terminated participation. DOE lacked appropriated funds to
complete the project on its own. In October 1983, DOE Assistant
Secretary Jan Mares gave congressional testimony in which he
expressed DOE’s support for the price-support negotiations
between the partnership and SFC as part of a loan restructuring
to ensure the partners’ continued participation in the project.
Discussions Concerning Terminating Participation in the Project
On the heels of this congressional testimony, SFC issued a
statement deferring any decision on price support assistance for
the project, citing concerns that additional legislation might be
required for that purpose. The partners then advised DOE that,
because the partnership lacked assurance that SFC would negotiate
expeditiously for price guarantees, the partnership felt
compelled to initiate procedures under the loan guarantee
agreement to terminate the partners’ participation in the
project.
Consequently, on November 18, 1983, the partnership notified
DOE that the management committee was considering a determination
by the partners to terminate participation in the project. Each
partner provided written notice to DOE, pursuant to the loan
documents, that it believed conditions existed permitting the
partner to vote to terminate participation in the project because
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