FAIRFIELD, NJ, March 19, 2002 - Covanta Energy Corp. Tuesday announced that it is discussing with its banks the impact of the recent put to it of the Class A Distressed Preferred Shares related to the Corel Centre in Ottawa, Canada and the Class II Distressed Preferred Shares related to Ottawa Senators Hockey Team.
The company's obligations to repurchase these shares for approximately $105.5 million are secured by letters of credit issued under the company's Master Credit Facility.
Covanta is now in discussions with its banks regarding possible means of resolving these obligations, although there can be no assurances that the discussions will result in an agreement.
As previously announced, the company is pursuing a restructuring of its balance sheet as part of its comprehensive review of strategic options.
Covanta Energy Corp. is an internationally recognized designer, developer, owner and operator of power generation projects and provider of related infrastructure services. The company's independent power business develops, structures, owns, operates and maintains projects that generate power for sale to utilities and industrial users worldwide.
Its waste-to-energy facilities convert municipal solid waste into energy for numerous communities, predominantly in the United States. The company also offers single-source design/build/operate capabilities for water and wastewater treatment infrastructures. Additional information about Covanta can be obtained via the Internet at www.covantaenergy.com.