CALGARY, ALBERTA--(Marketwired - Dec. 3, 2013) - Maxim Power Corp. ("MAXIM" or the "Corporation") (TSX:MXG) announced today that Patriot Power Holdings, LLC ("Patriot"), an affiliate of Rockland Capital, has issued a notice to MAXIM to terminate the agreement to purchase 100% of MAXIM's ownership interest in Maxim Power (USA), Inc. ("MUSA") due to an outstanding regulatory inquiry by The Federal Energy Regulatory Commission ("FERC").
MAXIM had previously entered into an agreement on August 5, 2013 to sell its interest in MUSA to Patriot, subject to regulatory approvals and certain closing conditions. As previously reported, MAXIM is responding to a FERC inquiry related to its offers to supply electricity to the ISO New England market. This process is continuing and MAXIM is fully cooperating with FERC. No formal proceedings or claims have been commenced against MAXIM and MAXIM is uncertain as to the timing and outcome of this process.
MAXIM is reviewing its position with respect to the notice of termination and the sale of MUSA. The net carrying value of MUSA on September 30, 2013 was $84 million, which included $16 million of cash that reverts to MAXIM on termination of the sale. MAXIM will also re-evaluate the ISO New England market as part of its strategic review considering tightening supply demand fundamentals and their potential positive impact on forward capacity prices and thus related asset valuations.
MAXIM will host a conference call for analysts and investors on Tuesday, December 3, 2013 at 8:00 am MT. The call will be hosted by John Bobenic, MAXIM's President and Chief Executive Officer, and by Mike Mayder, Vice President, Finance and Chief Financial Officer. To participate in this conference call, please dial (866) 696-5910 or (416) 340-2217 in the Toronto area and enter passcode 6718243. It is recommended that participants call at least ten minutes prior to start time.
Based in Calgary, Alberta, MAXIM is an independent power producer, which acquires or develops, owns and operates innovative and environmentally responsible power and power related projects. MAXIM currently owns and operates 40 power plants in western Canada, the United States and France, having 802 MW of electric generating capacity. MAXIM trades on the TSX under the symbol MXG. For more information about MAXIM, visit our website at www.maximpowercorp.com.
Statements in this release which describe MAXIM's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of MAXIM to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. MAXIM may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward-looking statements as required pursuant to applicable securities laws.