Why SCANA Is Selling Its Claims against Toshiba
SCANA sells a chunk of the claims
As reported by Reuters on October 24, 2017, Boston based-hedge fund Baupost Group has purchased the largest chunk of the $2.2-billion claim that SCANA (SCG) and Santee Cooper had against Toshiba regarding Westinghouse’s bankruptcy.
The hedge fund bought the claims after the two South Carolina-based utilities decided not to wait for the installment payments from Toshiba. Westinghouse, which declared its bankruptcy in March 2017, was the principal contractor for SCANA’s V.C. Summer nuclear power plant. The cost of the plant rose to over $20 billion after Westinghouse went bankrupt, after which time SCANA abandoned the project.
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SCANA’s 3Q17 results
South Carolina-based SCANA will report its 3Q17 financial earnings on October 26, 2017. According to Wall Street analyst estimates, SCANA is expected to report earnings of $1.19 per share, compared with $1.32 in 3Q16.
According to analyst estimates, SCANA is expected to report total revenues of $1.17 billion for 3Q17, compared with its revenues of $1.10 billion in 3Q16. South Carolina experienced milder weather in 3Q17, which might have resulted in lower electricity consumption and could negatively impact SCANA’s revenues for the quarter.
Notably, SCANA was in the news recently after the US Attorney’s office in South Carolina began a criminal investigation into the utility related to rate recovery of the V.C. Summer nuclear power plant.
South Carolina Electric & Gas Company, SCANA’s principal subsidiary, announced last month that it had sold its future guaranty settlement payments worth nearly $2.2 billion to Citibank.