September 27, 2017 / 4:29 PM / a year ago

Santee Cooper to sell claims from Toshiba for failed nuclear project

(Reuters) - South Carolina utility Santee Cooper said it would sell the rights to its portion of a $2.17 billion settlement with Toshiba Corp (6502.T) at a discount to Citibank (C.N), as the utility looks to avoid risk associated with payment delays spread over five years.

Commuters walk past a Citibank branch in Rio de Janeiro, Brazil September 6, 2017. REUTERS/Pilar Olivares

Under the agreement, Citibank will pay 91.5 percent of the settlement claim and the company will receive $831.2 million on Wednesday for its 45 percent share, Santee Cooper said.

The South Carolina utilities, Santee Cooper and South Carolina Electric Company, decided to abandon the twin-reactor project, V.C. Summer, in July, blaming the bankruptcy of project’s contractor, Toshiba Corp’s Westinghouse Electric Co.

The project was less than 40 percent complete with more than $9 billion having been spent on construction.

Reporting by Anirban Paul in Bengaluru; Editing by Arun Koyyur

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