Delays hit Drax acquisition
Energy group Drax is facing delays in its attempts to buy two US wood pellet manufacturers.
The Selby-based power generation firm is looking to acquire Texas and Louisiana Wood Pellets, the US subsidiaries of the collapsed German Pellet group.
The businesses were up for auction with businesses including Drax planning to buy them out of bankruptcy.
Now the sellers have halted the auction plans for 1 and 2 March, but they insisted that the process would continue later in the month.
On February 18, 2016, Louisiana Pellets filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court. The business, along with Texas Pellets, were part of the German Pellet group which failed due to the rising price of oil, lower pellet revenues after two warm winters and a failed investment in furnace manufacturer Kago in 2010.
