El Paso takes over RP firms

El Paso takes over RP firms

MANILA (Dow Jones): East Asia Power Corp. said on Friday it ceded assets as well as control over two of its power companies to El Paso Philippines Energy Co. as payment for a total $60.89 million in loans.

East Asia said among those to be turned over to El Paso Philippines are its entire stakeholdings in East Asia Utilities Corp., including assets such as Cebu Private Power Corp.

Cebu Power operates a 73-megawatt diesel-fired plant in central Philippines that caters to an industrial estate.

East Asia owes $4.79 million while East Asia Utilities has debts of $56.11 million to El Paso Philippines. The funds were used mainly to build Cebu Power's electricity plant.

East Asia said the loans were supposed to be paid by a 3 billion pesos loan from a syndicate of local banks, but it didn't push through "due to economic and political circumstances."

El Paso Philippines is a subsidiary of El Paso Energy Corp. (EPG), the largest gas pipeline distribution company in the U.S.