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Allegheny granted seventh waiver

February 24, 2003|by ANDREW SCHOTZ

Two Allegheny Energy subsidiaries on Friday received a seventh credit waiver from bank lenders.

The subsidiaries, Allegheny Energy Supply Co. and Allegheny Generating Co., were facing a Friday deadline.

However, the deadline was pushed back to Tuesday.

Quoting an unnamed "person familiar with the situation," Dow Jones Newswires reported Friday that Allegheny Energy's lenders "have agreed, in principle, to give the company a new package of credit facilities."

Allegheny spokeswoman Cynthia Shoop said the company had no comment on that report.

The U.S. Securities and Exchange Commission has approved a request for Allegheny to borrow up to $2 billion.

Allegheny is hoping to get the financing and work out a debt restructuring deal to avoid filing for bankruptcy protection.

Shoop has said there are about 20 lenders.

The first three extensions each covered two weeks and the next three each covered one week. Asked why the seventh waiver lasts just four days, Shoop said, "It's just normal for a process such as this as you approach completion."

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Allegheny Energy's stock closed at $7.89 Friday, up 39 cents.

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