Willbros Group, Inc. reached full and final agreement with TransCanada PipeLines Ltd. on the amount due to its U.S. construction subsidiary under a cost-reimbursable target price construction contract for seven pump stations in Nebraska and Kansas.
Willbros will receive $61 million in cash as payment for its outstanding receivables of $71.2 million that were disputed by TransCanada and agreed to waive all claims for additional fees and change orders. TransCanada agreed to relieve Willbros of any further liability with respect to the contract and to restore Willbros to its bid list for future work.
Randy Harl, president and CEO, remarked, “We are pleased to have reached agreement with TransCanada on this significant contractual issue and we look forward to restoring our relationship with an important customer. The resolution of this dispute enables us to strengthen the company’s balance sheet and gives us greater flexibility to continue delivering on our objective to reduce debt.”