AGL receives Loy Yang go-ahead

The Australian Gas Light Company (AGL) along with its Great Energy Alliance Corporation (GEAC) partners, have secured an agreement with the Loy Yang Power Partners, to extend the share sale agreement to 12 February 2004, including the exclusivity arrangements.
AGL receives Loy Yang go-ahead AGL receives Loy Yang go-ahead AGL receives Loy Yang go-ahead AGL receives Loy Yang go-ahead AGL receives Loy Yang go-ahead

This agreement follows the Federal Court decision on December 19 2003 clearing AGL to proceed with the proposed acquisition of a 35% minority interest in the Loy Yang A Power Station and Mine.

The Court found that AGL's involvement in the acquisition was not in breach of the Trade Practices Act despite ACCC warnings of increased power prices if the deal were to go ahead. To date the ACCC has not lodged an official objection.

All the parties involved are still in negotiations on how to restructure the power station's $3.1 billion dollars of debt and revolving stamp duty issues.

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