PHINMA Energy Corp. will withdraw its case against state-run Power Sector Assets and Liabilities Management Corp. (PSALM) over management of the Unified Leyte Geothermal Power Plant.
In a disclosure, the listed power firm told the Philippine Stock Exchange on Friday that “no further claims will be pursued.”
The move comes after PHINMA Energy and PSALM agreed to terminate an administration agreement involving the geothermal complex in Ormoc City’s Tonongan village.
Ending the deal will allow the company to improve supply costs while maintaining a diversified portfolio. The move also settled its obligations with PSALM.
In September, PHINMA Energy told the bourse that it had filed a case against the state-run corporation and its former president, Emmanuel Ledesma Jr., to halt them from terminating an accord on naming independent power producer administrators (IPPAs) for the power plant.
Ledesma led PSALM from 2010 to 2015.
The case, lodged at the Makati Regional Trial Court, sought “damages with prayer for a writ of preliminary injunction/writ of preliminary mandatory injunction and temporary restraining order (TRO)” against PSALM and Ledesma.
PHINMA Energy had said that, should the court grant the TRO, that would stop PSALM from ending the deal on grounds of administrator’s default and from asserting additional claims, to their detriment.
PSALM names IPPAs through public biddings.
The energy firm previously sought to renegotiate the deal and proposed several measures for relief in its letters to PSALM.
PHINMA Energy—then Trans-Asia Oil and Energy Development Corp.—won the right to oversee the energy strips on November 7, 2013.
But Supertyphoon Yolanda (international name: Haiyan) struck Leyte the following day, causing severe damage to the power plants.
PSALM awarded the management of the energy strips to the winning bidders on November 9.
Established in 1969, PHINMA Energy primarily generates and supplies power, with secondary investments in petroleum and geothermal exploration.