For the upfront payment that accounts for 40 percent of the purchase price, YNN Pacific Consortium, Inc. has already cornered a partner in Malaysian firm Ranhill Power Berhad to assure that the much-needed cash can finally be raised and in turn paid to PSALM.

As a precondition to the newly-extended deadline of June 30, 2006, YNN and its partner, is required to settle $ 227.54 million to the government. The breakdown covers the 40 percent down payment amounting to $ 222.8 million; advance rentals of $ 4.0 million and option price of $ 740,000.

For the initial payment, Ranhill will be tapping ABN-AMRO as lead arranger, advisor and sole bookrunner in raising the funds; and to be backed up by its balance sheet.

"ADB is expected to come after the payment of the $ 227 million. It will help in refinancing the balance of the payments and it may even consider possible equity investment," said PSALM president Nieves L. Osorio. ADB is a lender in the Masinloc coal-fired project; and has actually issued a waiver on the asset’s sale as part of the Omnibus Amended Agreement on the transfer of National Power Corporation debts to PSALM.

While questions on the realignment of equity investors are now thrown to PSALM, Osorio maintains that such is allowed in the asset sale agreement with YNN.

In light of the threemonth extension, YNN was required to increase its performance bond by $ 3 million until April 28 this year to $ 14 million from the existing $ 11.0 million; and its expiration date has to be extended until December this year.