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Banks give Allegheny Energy extension on loan waivers

January 02, 2003|by LAURA ERNDE

Bank lenders have given Allegheny Energy officials more time to renegotiate the company's debt agreements, putting off a possible bankruptcy filing for at least two more weeks.

In December, officials with the Hagerstown-based utility announced it had $334.4 million in losses for the first three quarters of this year and said they may seek Chapter 11 bankruptcy protection if they couldn't secure financing.

Two of its subsidiaries, Allegheny Energy Supply Co. and Allegheny Generating Co., had received waivers from bank lenders that extended negotiations through Dec. 31.

The banks have extended those waivers through Jan. 14, the company announced Tuesday.

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