UIL Not To Terminate Agreement To Buy Philadelphia Gas Works At This Time

(RTTNews) - UIL Holdings Corp. (UIL) said Monday it has decided that it will not, at this time, terminate its Asset Purchase Agreement with the City of Philadelphia under which UIL would acquire the operating assets and certain liabilities of the Philadelphia Gas Works.

Since July 16, UIL has had the contractual right to terminate the agreement because the Philadelphia City Council had not enacted an ordinance approving the acquisition. On October 27, the City Council announced that it had informed the Mayor that the City Council would not endorse the sale of Philadelphia Gas Works to UIL.

The company said it will continue to monitor developments in Philadelphia to assess the advisability of further delaying termination of the agreement. If the City Council does not adopt an ordinance approving the deal by December 31, the asset purchase agreement will automatically terminate in accordance with its terms.