Bowater may buy Brooklyn energy plant

However, Nova Scotia Power Inc. (NSPI) is currently blocking the sale.

Brooklyn Power – called the Brooklyn Energy Centre in the telephone book - produces electricity for NSPI from wood waste provided by Bowater and other companies and also provides its neighbouring business with steam.

One of parent company, Abitibi-Bowater Inc.’s primary concerns with operating in Nova Scotia is the high cost of power.

It isn’t known if Bowater is attempting to take a majority or minority position in the company or buy it outright. The share price offered is also unknown. A message left at Brooklyn Energy was not returned at deadline.

Jean Philippe Cote, Director of Public Affairs and Government Relations – Canada for Abitibi-Bowater said he couldn’t comment at the moment except to state, “We don’t own the plant.”

NSPI spokesperson, Margaret Murphy said she couldn’t comment as well for the same legal reason.

The potential sale has gone to the Supreme Court of Nova Scotia as Nova Scotia Power Inc. is refusing to “give its consent to the transfer of BPC’s shares to Bowater Mersey Paper Company Inc. unless certain conditions are met,” according to Supreme Court Docket, SH 289589, which is available through the “Ask Joe Howe” search engine on the Nova Scotia government’s web site.

“Clause 13.4 of the Contract contains a provision that prevents BPC from changing its voting control without first obtaining the written consent” of Nova Scotia Power.

The contract doesn’t expire until 2028.

The docket continues: “BPC (Brooklyn Power Corporation) is not willing to comply with the NSPI conditions and seeks to have the issue resolved by way of arbitration.”

The contract includes this dispute mechanism. Neither Abitibi-Bowater nor Bowater Mersey are involved in the case.

The court has appointed J. Brian Casey, Ll.B., a partner in the Toronto office of Baker & McKenzie, Barristers and Solicitors, and a member of ADR Chambers International as the arbitrator.