Consolidated Energy - comment
The settlement of the litigation between the T&T government and Proman is more complex than expected; however, the overall impact on CONSEN is positive. Local newspapers are reporting that Proman will pay $150 million to halt the enforcement of previous court rulings. Proman had already put USD83m in escrow, and with dividends (also held in escrow), the additional sum to be paid to the government will be about $60m. Proman will no longer have a threat to its ownership of Clico Energy (now renamed PETL) being voided. How this translates to repayment of the Proman loan is unclear, but the absence of significant litigation on Proman’s Trinidadian assets is helpful.