THE STORY
An inauspicious start to the BTU involvement with Meiya. It agreed to acquire Meiya for $220 million but ended up paying $236 million and had to BORROW $136 million from the SELLER to conclude the transaction. BTU is given three months to pay the loan but at some point BTU asks the SELLER for an extra month to come up with the remaining $99 million owed to the SELLER. Subsequently, it BORROWS $105 million from a consortium of banks to pay the remaining $99 million. BTU is NEVER able to "take out" the loan. Throughout its entire life, the Meiya investment gets saddled with the debt and its costs and risks.
The Middle East investors that actually come up with the money for the purchase believe they bought Meiya for $220 million. Abdulmohsen Hayat, the 44% owner of BTU Holdings, believes that Meiya was acquired for $220 million. The BTU Ventures website announces the $220 million acquisition. Wael Al-Mazeedi is SILENT regarding the price in two of his affidavits filed in Massachusetts courts.
Simple math. Price tag as told to EVERYBODY by BTU - monies actually received by PSEG - Cost of not having all the money required to complete the purchase in the first place = $220 million - $236 million - ($105 million - $99 million) = -$21 million.
