Allegheny Energy subsidiaries get another extension

February 10, 2003|by ANDREW SCHOTZ

Allegheny Energy Inc. announced Friday that two subsidiaries have received another extension on credit waivers from bank lenders.

Lenders have agreed to extend the waivers one more week - from Friday, when they expired, until Feb. 14, Allegheny said.

The subsidiaries are Allegheny Energy Supply Co. and Allegheny Generating Co.

Allegheny Energy, the parent company, is based in Hagerstown.

Allegheny officials are seeking financing of up to $2 billion and working on a debt restructuring deal to avoid filing for bankruptcy protection.

Bank lenders have extended credit waivers five times in recent months.

The first three extensions were for two weeks each. The most recent two extensions were for one week.

Allegheny spokeswoman Cynthia Shoop declined to comment on the significance of the length of the extensions.

"Waivers are granted as part of the (negotiating) process," she said.


Shoop would not name the lenders, but she said there are about 20.

Feb. 14 is also the day an administrative law judge is expected to rule on a dispute over two Allegheny Energy Supply contracts with California. California officials hope to void or restructure the contracts because in March 2001, when they were signed, energy prices were much higher.

The larger of the two contracts is a $1.3 billion asset for Allegheny Energy, the company has said.

Allegheny Energy's stock closed Friday at $7.55, up 16 cents.

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