SouthWest Water Company (NASDAQ:SWWC) announced that it has reached a settlement in the legal proceedings between the Company's subsidiary, New Mexico Utilities Inc. (NMUI), and the Albuquerque Bernalillo County Water Utility Authority (ABCWUA).
The agreement calls for ABCWUA to acquire the assets of NMUI in settlement of condemnation for $60 million. The funds will be paid to SouthWest Water at closing which is expected within 120 days. ABCWUA also agreed to offer employment to NMUI employees.
In addition, the settlement resolves all other legal issues between NMUI and ABCWUA including the dispute over the sewer fee ABCWUA charged NMUI for the treatment of wastewater and the ownership of the return flow credits from that treated wastewater. As part of the settlement, NMUI will pay $7 million to ABCWUA at the time of closing to resolve the sewer fee issue. [ more ]
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