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.

Alycia Goody, James Commodore, Jonathan Golden - former Corporate Counsel for BTU and/or QGEN: background info and their roles in the BTU and/or QGEN "story"

Another work in progress [Note: postings WILL eventually be completed with hyper-links to appropriate references].

James Commodore

Based on publicly available information, James Commodore plays an absolutely critical role in support of some of BTU's (Wael Al-Mazeedi's) litigation against his former employees.

Mr. Commodore authored a very "interesting" affidavit (soon to be included in this blog) supporting Mr. Al-Mazeedi's - BTU's lawsuit against Mr. Betancourt.  Also, although probably not a big issue in itself, it is interesting that the Notary Public present when Mr. Commodore stated that his affidavit was "Sworn to under the pains and penalties of perjury this 14th day of January, 2009." was none other than Ms. Christina Stephens, Mr. Al-Mazeedi's ever-present administrative assistant.

Link: James Commodore CV from LinkedIn

Jonathan Golden

Also of interest (based on public info.), Jonathan Golden was a lawyer at WilmerHale that worked on BTU's (Wael Al-Mazeedi's) Meiya Power Company transactions and then left or was let go by WilmerHale.  Subsequently, he was hired and worked for BTU for 11 (eleven) months or so until he left or was let go.

Link: Jonathan Golden CV from LinkedIn

Meiya Power Company
Mr. Golden's involvement in the BTU sale of Meiya Power to Standard Chartered is mentioned in the "Selected Merger and Acquisition Transaction" section of the following document:

Link: Jonathan Golden experience: BTU sale of Meiya Power to Standard Chartered

Alycia Goody 

Alycia Goody may not have even realized this but she is still the Registered Agent of RECORD for BTU Holdings (USA) Inc.

Link: Alycia Goody: Registed Agent for BTU Industries Holdings (USA) Inc.
Link: Alycia Goody CV from LinkedIn