Primary Energy Recycling Corporation Announces an Amendment to its Credit Agreement and Completion of the North Lake Turbine Outage



    OAK BROOK, IL, June 15 /CNW/ - Primary Energy Recycling Corporation
(TSX: PRI.UN or the "Company") today announced that it has entered into an
amendment to the Primary Energy Operations LLC Credit Agreement that provides
temporary relief under certain financial covenants and that its North Lake
Energy facility has returned to service.
    Effective June 13, 2007, Primary Energy Operations LLC and its senior
lenders entered into an amendment to the Credit Agreement. The amendment
modifies the compliance limits for certain coverage ratio covenants for the
next four quarterly test periods. Beginning the second quarter of 2008 and
thereafter, the pre-amendment compliance limits will continue to apply. The
company anticipates that with this relief the debt covenants should not impair
future distributions. A copy of the amendment has been filed with SEDAR and is
available at www.sedar.com.
    Mr. Michel Lavigne, Chair of the Board of Directors said "The covenant
relief is important because it gives us greater assurance that we can maintain
compliance with the Credit Agreement and continue payment of monthly
distributions to holders of our enhanced income securities. We appreciate the
lenders' understanding of the Company's current situation and their support in
approving the amendment."
    As previously announced, a steam turbine blade failure occurred at the
Company's North Lake Energy facility on April 19, 2007. Repairs have now been
completed and the unit was returned to service on May 25, 2007. Since May 25,
2007, the unit has operated without interruption. The total outage duration
was 36 days. The financial impact, including lost revenue and repair costs is
estimated to be $US 1,775,000. After subtracting costs that are not eligible
for insurance recovery and allowing for the insurance deductible, a net claim
of approximately $US 200,000 will likely be pursued. Timing and size of actual
recovery is not known.

    Forward-Looking Statements

    When used in this news release, the words "anticipate", "expect",
"project", "believe", "estimate", "forecast" and similar expressions are
intended to identify forward-looking statements. Such statements are subject
to certain risks, uncertainties and assumptions pertaining, but not limited,
to operating performance, regulatory parameters, weather and economic
conditions and the factors discussed in the Company's public filings available
on SEDAR at www.sedar.com. These forward-looking statements are made as of the
date of this press release and the Company assumes no obligation to update or
revise them to reflect new events or circumstances.

    About Primary Energy Recycling Corporation

    The Company owns a majority interest in Primary Energy Recycling Holdings
LLC ("Primary Energy"). Primary Energy, headquartered in Oak Brook, Illinois,
indirectly owns and operates four recycled energy projects and a 50% interest
in a pulverized coal facility (collectively, the "Projects"). The Projects
have a combined electrical generating capacity of 283 megawatts and a combined
steam generating capacity of 1.8 MMlbs/hour. Primary Energy creates value for
its customers by capturing and recycling waste energy from industrial and
electric generation processes and converting it into reliable and economical
electricity and thermal energy for its customers' use. For more information,
please visit us at www.primaryenergyrecycling.com.





For further information:

For further information: V. Michael Alverson, Vice President and CFO,
Primary Energy Ventures LLC, (630) 371-0639, investorinfo@primaryenergy.com

Organization Profile

Primary Energy Recycling Corporation

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890