MP1 Sea Commander Power Buoy

The Sale Process

The Joint Administrators of MP1 wish to conclude an early sale of the Power Buoy System. In light of this, set out below is an indicative timetable for sale of the Power Buoy System:

  • Interested parties are invited to read the information contained in this website.
  • Interested parties are invited to request further information to allow them to further appraise their interest in the Power Buoy System. Requests for further information should be made in writing to Ernst & Young LLP at the contact details provided. Further information will be made available to interested parties once a confidentiality agreement, a copy of which is attached to this website, has been signed.
  • Interested parties will be invited at the sole discretion of the Joint Administrators to attend the Port of Dundee to tour the floating buoyant structure.
  • Interested parties are requested to submit in writing a preliminary non-binding indication of interest (“the Indicative Offer”). This Indicative Offer should be submitted on two separate bases:
    1. A first Indicative Offer - which should be submitted on the basis that the purchaser acquires the Power Buoy System in its present uncompleted state - and funds completion of all elements of the outstanding works on the Buoy; and
    2. A second Indicative Offer - which should be submitted assuming that the purchaser acquires the Power Buoy System once complete (including on-shore commissioning and loadout) - but that the purchaser funds the fabrication of a new Gravity Base Structure, and tow-out and installation at the Power Buoy System's installation location.
    Although Indicative Offers are requested on two bases, the Joint Administrators would stress that MP1's strong preference is that interested parties acquire the Power Buoy System in its present uncompleted state and fund completion of all elements of the outstanding works.
  • Indicative Offers should be submitted in writing, and outline the following matters:
    1. The price, stated in Great British Pounds Sterling, that you propose paying for the Power Buoy System, and the timescale within which this will be paid.
    2. Interested parties should explain how they would finance the purchase of the Power Buoy System. To the extent that it will be financed by third parties, a copy of a letter from your financiers confirming that such facilities are available and describing any conditions attached to them should be provided.
    3. Details should be given of the key assumptions made in arriving at the Indicative Offer.
    4. Details should be given of any further due diligence or additional information that is required to allow an interested party to submit a final and binding offer should also be provided - together with an indication of the timescale for completion of this further due diligence.
    5. Details should be given of any conditions to which any formal offer would be subject, including shareholder approval, regulatory consents or other conditions which would be required to be satisfied in order to enable you to implement your offer. Where such conditions are stated, interested parties should identify the timescale in which it is expected that these conditions could be fulfilled.
    6. Details should be provided of any on going role for the existing management and key employees of MP1 post transaction.
    7. An indication of your requirements to complete the deal in a short timescale - as preference will be given to speed and certainty of completion.
    8. Offers should be dated and signed by an authorised individual whose capacity should be stated.
    9. Any other points you believe are relevant to your offer should be stated.
    10. In respect of the second Indicative Offer only, interested parties should:
      • Set out their requirements for completion of fabrication, on-shore commissioning and loadout of the Power Buoy System, and of any modifications required to the design of the Buoy in order to meet an interested parties’ requirements; and
      • Details should be provided of the date from which an interested party would seek the Power Buoy System to be made available to them.
      The Joint Administrators would, however, again stress that their strong preference is that interested parties acquire the Buoy in its present uncompleted state and fund completion of all elements of the outstanding works.
      Preferential consideration will be given to offers which:
      • Specify payment in cash of the consideration in full at completion;
      • Are submitted with limited conditionality and further due diligence requirements; and / or
      • Require limited modifications to the design of the Buoy.
  • Interested parties are invited to submit an Indicative Offer as soon as reasonably practicable, and in any event no later than 5pm (UK time) on Friday 17 October 2008 (“the Closing Date”). Indicative Offers should be submitted in writing marked “Strictly Private and Confidential” to Gavin Yuill of Ernst & Young LLP at the address below:

    Monitor Producer 1 Limited (In Administration)
    c/o Ernst & Young LLP
    George House
    50 George Square
    Glasgow
    G2 1RR

    Interested party should also submit a copy of their Indicative Offer by e-mail to gyuill@uk.ey.com by the Closing Date.

    The Joint Administrators reserve the right to vary this Closing Date at short notice.

  • Following receipt of Indicative Offers, the Joint Administrators will select, at their sole discretion, preferred bidder(s) to invite to undertake further limited due diligence.
  • A timetable for completion of the sale of the Power Buoy System will be issued by the Joint Administrators to the preferred bidder(s) at that stage.

The Joint Administrators expressly reserve the right at any time and in any respect to amend or terminate the sale process, timetable or these procedures, to terminate discussion with any or all interested parties and to negotiate with a party in a manner and to a timetable other than that outlined above.