Phinma Energy files case vs PSALM over deal termination
Phinma Energy Corp. of the Del Rosario family has asked the court to stop the Power Sector Assets and Liabilities Management Corp. from unduly terminating a contract involving a geothemal power plant in Leyte.
The contract covers a 40-megawatt strip of energy of the Unified Leyte Geothermal Power Plants.
“The grant of the prayer for a temporary restraining order will restrain PSALM from terminating the agreement on the ground of administrator’s default and prevent PSALM from asserting any further claim to the detriment of the corporation,” Phinma Energy said.
“In the event that the court rules in favor of Phinma Energy, the agreement may be invalidated and an award for damages may be made to the corporation,” the company added.
Phinma said it formally sought to renegotiate its agreement and proposed several measures for relief since the power plant sustained extensive damage following the onslaught of Typhoon Yolanda in November 2013.
However, the firm received a notice of default from PSALM resulting in the termination of the agreement and the forfeiture of the performance bond.