HAGERSTOWN, Md., Jan. 15, 2003 — Allegheny Energy Inc. announced Tuesday that, based on substantial progress made in negotiations with lenders, its subsidiaries, Allegheny Energy Supply Co., LLC, and Allegheny Generating Co., have sought and received extensions on waivers from bank lenders under their credit agreements.
The company previously announced that these subsidiaries had received waivers, which extended through January 14, 2003, from their bank lenders with regard to certain covenants contained in their credit agreements. These waivers have now been extended through January 31, 2003.
Allegheny Energy and its subsidiaries are continuing discussions with bank lenders under these and other facilities, as well as with other lenders and trading counterparties, regarding outstanding defaults, required amendments to existing facilities, and additional secured financing. As the company noted in previous news releases, if it is unable to successfully complete negotiations with these lenders, including arrangements with respect to inter-creditor issues, it would likely be obliged to seek bankruptcy protection.
With headquarters in Hagerstown, Md., Allegheny Energy is an integrated energy company with a balanced portfolio of businesses, including Allegheny Energy Supply, which owns and operates electric generating facilities and supplies energy and energy-related commodities in selected domestic retail and wholesale markets; Allegheny Power, which delivers low-cost, reliable electric and natural gas service to about three million people in Maryland, Ohio, Pennsylvania, Virginia, and West Virginia; and a business offering fiber-optic and data services. More information about the company is available at www.alleghenyenergy.com.