Judge grants NuScale access to $6.1M
By Erik Siemers, Business Journal staff writer
Business Journal staff writer
A federal judge has granted NuScale Power Inc. access to more than $6 million in funds that had been frozen due to a federal lawsuit against its biggest investor.
The unsigned order filed Wednesday in U.S. District Court in Connecticut permits Corvallis-based NuScale to use the remaining $1.1 million it already has on hand and will also allow the company a loan of up to $5 million from a “special opportunities fund” held by its investor, the Michael Kenwood Group.
NuScale, which is developing modular reactors for nuclear power plants, on Jan. 20 said it was halting most of its operations after the head of Stamford, Conn.-based Michael Kenwood Group was hit with a lawsuit by the U.S. Securities and Exchange Commission.
The SEC claims that Francisco Illarramendi, the Kenwood Group’s majority owner, misappropriated some $53 million from a pair of hedge funds controlled by the Kenwood Group into bank accounts he personally controlled and then made unauthorized investments in long-term private equity deals.
It said Illarramendi invested $23 million in an unnamed West Coast based nuclear energy company that was due a $5 million cash infusion this month to cover operational expenses.
NuScale has raised $37 million from investors since its founding in 2007 and said the majority has come from the Michael Kenwood Group, which began investing in the company last year.
Earlier this week, NuScale said it was furloughing 30 workers in Portland and Corvallis and issuing pay cuts to its remaining 70 employees as it continues to seek new long-term financing.
Chief marketing officer Bruce Landrey said the company must still negotiate terms for the $5 million loan with Petróleos de Venezuela S.A., a state-owned Venezuelan energy conglomerate that invested in the Michael Kenwood Group special opportunities fund.
@ErikSiemers | email@example.com | 503-219-3418
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.