The Babcock & Wilcox Co. has reached a settlement with affiliates of TXU Corp. over eight coal-fired boilers and other equipment ordered for TXU's solid-fuel, power-generation program in Texas.Read more about Babcock & Wilcox
Dallas-based TXU (NYSE: TXU) ordered the units in June 2006, but announced its intent to curtail the projects in February 2007. The companies now have agreed to terminate five of the contacts. TXU has paid B&W an additional $79.3 million in respect of these projects and will take title to the equipment and materials produced or procured for them.
Meanwhile, B&W, a subsidiary of Houston-based McDermott International Inc. (NYSE: MDR), will continue to fulfill its contracts on the remaining three units and will supply them to TXU.
The combined remaining value associated with the three contracts was about $350 million as of Dec. 31.
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