Longview Liens Still Unresolved
Creditors tell judge sides at an impasse
Morgantown Dominion Post
30 December 2013
By Alex Lang
The companies with hundreds of millions in mechanic’s liens on
Longview Power plant told a judge the two sides disagree on how to
proceed in resolving the issue.
Longview Power LLC filed for Chapter 11 bankruptcy earlier this
year in the U.S. Bankruptcy Court for the District of Delaware.
In 2007, Longview Power entered into agreement with Siemens Energy
Inc., Foster Wheeler North America Corp. and Kvaerner North
America Construction Inc. to build the 700-megawatt power plant in
According to previous court filings, Siemens and Kvaerner had
filed mechanic’s liens against the property totaling roughly $335
According to the West Virginia state code, a contractor who
“erects, builds, constructs, alters, removes or repairs any
building or other structure,” under a contract with the owner can
file a lien against the structure if the owner doesn’t pay for the
work. This is known as a mechanic’s lien.
Longview had asked a judge to reduce the amount of the liens,
saying that some didn’t qualify or part is an unsecured debt.
In a letter to the judge last week, the contractors noted that on
Dec. 23, the two sides met to discuss the issue. It was during
that meeting the two groups discovered they “fundamentally
disagree” about the appropriate method to proceed regarding a
request to eliminate the Kvaerner and Siemens claims.
Now, the contractors plan to file their response to the request by
Jan. 10. The filing will include the issue that must be decided
and how making a decision in the timeframe proposed by Longview is
Longview and a group of creditors have refused to agree to a reply
date other than their own proposed Jan. 31 deadline, according to