Showing posts with label BTU Power Company II. Show all posts
Showing posts with label BTU Power Company II. Show all posts

Wednesday, July 6, 2011

BTU acquisition of Meiya - Lessons in how a Private Equity group makes a $220 million purchase while having only $100 million (actually, BTU never mentions this but the price was $236 million)

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.

Saturday, June 25, 2011

BTU and Almazeedi: their apparent mantra - "one set of rules for us, another set of rules for everybody else"

Almazeedi: making statements he is not allowed to make and can not substantiate
We are picking-up a subject briefly mentioned previously: information included in the "new" btupower.com website.

No information obtained in depositions conducted as part of BTU's ongoing lawsuits can be used publicly.  Customary confidentiality agreements stipulate that such information will be used only in the litigation. Otherwise, we would be at full liberty to place the contents of Almazeedi's forthcoming depositions on this blog.

Almazeedi chose to ignore those agreements when he published the following statement in the btupower.com website that replaced the disappeared btuventures.com:
ORIGINAL btupower.com:  "Recently one such defendant admitted, under oath, that he had initiated and maintained a blog that posted negative and inaccurate content about the BTU Companies and that he had not told the truth in a previously filed affidavit with the courts.  Another such defendant admitted that he had contributed comments to this defamatory blog."
He, perhaps with the assistance of his lawyers, has finessed the language of the site to essentially say the same things in a different way:
MODIFIED btupower.com:  "Following the initiation of the lawsuits, one of these defendants initiated and maintained a blog that posted negative and inaccurate content about the BTU Companies, and re-filed his affidavit with the court to correct inaccurate statements. Another defendant has also contributed comments to the defamatory blog."
Only someone with access to those depositions, Almazeedi and his attorneys WilmerHale, Foley Hoag, Leonard Learner, etc. could make the assertions included in both the ORIGINAL as well as the MODIFIED STATEMENT.

What can we conclude about Almazeedi's actions?
He could easily have posted the "admissions" he mentions in his website:
  1. IF THEY EXIST (i.e. if the "admissions" were ever made)
  2. IF HE HAS A RIGHT TO PUBLISH
In our opinion this is the easiest thing in the world to do to prove your point.


Other misinformation
Almazeedi mentions that "We have and will continue to take appropriate action against these individuals."  He is referring to the lawsuits initiated against former employes and contractors during the past two years. Those lawsuits did not, and do not, have ANYTHING to do with this blog. 

Conveniently forgetting
Almazeedi purposely obfuscates facts in the following statement "Despite a calculated campaign of U.S. litigation and disinformation by these various defendants.."  It is indeed quite convenient for him to create the illusion of some "grand conspiracy" - for all intents and purposes it gives him license to do and say things that one normally couldn't.

FACTS
The lawsuits filed by Hayat, the 44% owner of BTU Holdings Company and the two former investors in BTU Power Company II had their basis in actions that took place long before Betancourt, Murphy, and McBrearty entered into the BTU picture.

CIRCULAR LOGIC
Perhaps Almazeedi and BTU are forgetting that THEY initiated the litigation against those former employees and contractors.  How can Betancourt, Murphy, and McBrearty have been a part of a "calculated campaign" to get themselves sued by Almazeedi and BTU?

Sunday, January 2, 2011

Aref Kooheji, former CEO of Dubai Islamic Bank Investment Banking Group, describes the genesis of BTU in an article titled: "Marrying capital with opportunities | ISLAMIC PRIVATE EQUITY | CPI Financial" (May 2006)

Background
Something incongruous in this article regarding the description of the role of the Dubai Islamic Bank in the creation of BTU.  The references made below to the "first fund" and "second fund" appear to be BTU Power and BTU Power II, respectively.  When read together with the post immediately following this one a rather murky picture emerges.

Note: Two things to keep in mind while reading the article immediately below; 1) the photograph in the article does not match other images of Mr. Kooheji found elsewhere in the internet, and 2) there are many references to Mr. Kooheji throughout the web before his departure from DIB - there are almost no references to Mr. Kooheji throughout the web after his departure from DIB - he drops off the radar.  
"Dubai Islamic Bank is no stranger to investment banking, having been one of the region's leading players for some time, Islamic or conventional, and has recently announced plans for a $5 billion family of private equity funds. AREF KOOHEJI, the CEO of the Investment Banking Group, spoke to Robin Wigglesworth about the opportunities of emerging markets."
Note: The reference to BTU is found in the 11th Question and Answer section of the interview. 
"No,  we started out with one private equity fund, BTU. A few years ago, as everyone knows, Enron went through a lot problems, and as a result a lot of large power companies started to sell some of their international exposure and focus on their home markets, whether they were US, Dutch or German.
As acquiring all these assets would be beyond any one company or bank, I thought we could establish a fund, where we could take up strategic stakes in these companies.