SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act 1934
Date of Report August 27, 1997
(Date of earliest event reported)
CE CASECNAN WATER AND ENERGY COMPANY, INC.
(Exact name of registrant as specified in its charter)
Republic of the Philippines 333-608 (not applicable)
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
6750 Ayala Avenue, 24th Floor, Makati, Metro Manila, Philippines
(Address of principal executive offices) (Zip Code)
Steven A. McArthur, Esq.
CE Casecnan Water and Energy Company, Inc.
c/o CalEnergy Company, Inc.
302 South 36th Street, Suite 400
Omaha, NE 68131
(402) 341-4500
(Name, address, including zip code, and phone number, including
area code,
of United States agent for service)
Registrant's Telephone Number, including area code: (402) 341-4500
N/A
(Former name of former address, if changed since last report)
Item 5. Other Events
On August 27, 1997, the Registrant announced that it has
received a favorable summary judgment ruling in New York State
Court against Korea First Bank. The judgment, which is subject
to appeal by the bank, requires Korea First Bank to honor a
$79,329,000 drawing by the Registrant on a $117,850,000
irrevocable standby letter of credit. The letter of credit had
been issued as security for the obligations of Hanbo Engineering
& Construction Co., Ltd. and Hanbo Corporation (collectively
"Hanbo") under a turnkey engineering, procurement and
construction contract for the Casecnan project which was
terminated by the Registrant in May due to multiple defaults by
Hanbo, including Hanbo's insolvency. A press release issued by
the Registrant is attached hereto and incorporated herein by
reference.
Item 7. Financial Statements and Exhibits
Exhibit 1 - Press Release dated August 27, 1997
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
CE Casecnan Water and Energy Company, Inc.
By: /s/ Douglas L. Anderson
Douglas L. Anderson
Assistant Vice President
Dated: August 27, 1997
Exhibit 1
FOR IMMEDIATE RELEASE
Craig M. Hammett - Vice President, Chief Financial Officer 402-341-4500
Jeffrey S. Laudin - Manager, Investor Relations 402-341-4500
CE CASECNAN OBTAINS SUMMARY JUDGMENT AGAINST
KOREA FIRST BANK ON LETTER OF CREDIT DRAW
Manila, Philippines, August 27, 1997: CE Casecnan Water and
Energy Company, Inc. ("CE Casecnan"), a 35% owned affiliate of
CalEnergy Company, Inc. ("CalEnergy") (NYSE, PSE, and LSE Symbol:
CE) announced today that it has received a favorable summary
judgment ruling in New York State Court against Korea First Bank.
The judgment, which is subject to appeal by the bank, requires
Korea First Bank to honor a $79,329,000 drawing by CE Casecnan on
a $117,850,000 irrevocable standby letter of credit. The letter
of credit had been issued as security for the obligations of
Hanbo Engineering & Construction Co., Ltd. and Hanbo Corporation
(collectively "Hanbo") under a turnkey engineering, procurement
and construction contract for the Casecnan project which was
terminated by CE Casecnan in May due to multiple defaults by
Hanbo, including Hanbo's insolvency.
Donald M. O'Shei, Jr., Chief Executive Officer of CE
Casecnan, said: "We are pleased to have received this favorable
court ruling requiring Korea First Bank to honor the draw made by
CE Casecnan on the irrevocable, standby letter of credit issued
by the bank to support Hanbo's obligations to CE Casecnan. While
our replacement contractor has mobilized and is already
proceeding with work on the important Casecnan project in the
Philippines, the receipt of the letter of credit funds from Korea
First Bank remains essential to the completion of the project and
we will continue to press for Korea First Bank to honor its clear
obligations under the letter of credit and make prompt payment.
It is essential that international lending institutions honor
their obligations under standby letters of credit and we believe
it is virtually unprecedented that Korea First Bank has failed to
comply with customary banking practices and failed to honor its
letter of credit obligations to date. However, if Korea First
Bank chooses to appeal this court ruling and thereby further
delay CE Casecnan's receipt of the requested funds, we intend to
pursue Hanbo and Korea First Bank for all additional damages
arising out of such actions as well as their actions to date,
including making such additional draws as may be required on the
remaining balance of the letter of credit."
CE Casecnan's proposed combined irrigation and 150MW
capacity hydroelectric project is located on the island of Luzon
in the Republic of the Philippines. The project will sell
electricity and water to the Philippine National Irrigation
Administration.
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