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The takeover agreement values Transmeridian's common shares at about $350 million.
The takeover agreement also gave the authority the one-year option to buy the plants.
Each has made a bid for the real estate company, but so far no offer has been high enough to secure a takeover agreement.
Under the takeover agreement, the authority buys power from the KeySpan plants and also pays for virtually all the costs, including taxes and fuel, of running the plants.
AbbVie's withdrawal from the deal, agreed in July, will cost it a $1.64bn break fee which it must pay to Shire under the companies' takeover agreement.
(An earlier article about A.I.G.'s threats to scuttle its takeover agreement appears in World Business, which went to press before negotiations ended).
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They have been the lever by which a number of buyers have sought to escape from takeover agreements.
A MAC is a clause placed in takeover agreements that allows a buyer to walk away if a material adverse change happens to the target company during the time a deal is announced and completed.
It is an escape hatch usually built into takeover agreements, allowing a would-be buyer to end a deal if the company being bought has experienced a previously undisclosed weakness in its operations.
"There's no question that there's going to be litigation," he said, adding that without the pending threat of an emergency manager takeover, the agreement would not exist.
The takeover also needs agreement from Australia and South Africa.
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