Primary Energy Recycling Corporation Announces Distribution Declaration Deferral

    OAK BROOK, IL, Sept. 21 /CNW/ - Primary Energy Recycling Corporation
(TSX: PRI.UN) announced today that its Board of Directors has decided to defer
declaration of September's cash distribution (normally payable at the end of
October to holders of record on September 30) to holders of its enhanced
income securities ("EIS"). The Board determined that the current forecast of
third quarter results still depends on an anticipated Harbor Coal inventory
survey results and is otherwise not sufficiently conclusive to determine
whether the Company will be in compliance with senior debt and subordinated
note indenture covenants.
    The Company is currently in advanced negotiations with the customer of
its Harbor Coal facility to amend certain contract terms that would improve
the predictability and stability of its financial results. While the intent of
the parties is to execute the amendment in sufficient time to be used in
determining third quarter results, there is uncertainty that these
negotiations will be completed as planned. The amended contract is also
expected to improve third quarter financial results relative to the existing
contract. If the amended contract becomes effective for the third quarter, the
Company anticipates that it will be in compliance with its financial covenants
and satisfy the tests required to pay cash distributions. If financial results
are determined under the existing unamended contract there is a possibility
they will be insufficient to maintain compliance with certain senior debt and
subordinated note indenture covenants, thus precluding payment of
distributions unless waivers are obtained from lenders and noteholders. The
Company has commenced discussions with senior lenders regarding the
possibility of obtaining waivers. While the Board of Directors would prefer to
declare a distribution consistent with recent practice, the Board deemed that
it is not prudent to make such declaration until there is certainty about the
expected financial results. The Company anticipates making a further
announcement concerning the distribution in early October. The Company still
intends to make the $Cdn 0.0667 distribution previously announced on
August 21, 2007 for payment on September 28, 2007.
    Management will host a conference call to further discuss this matter on
Friday, September 21, 2007 at 11:00 (EDT). Following management's
presentation, there will be a question and answer session. To participate in
the conference call, please dial (416) 644-3414 or (800) 733-7571. A
conference call replay will be available until 12 a.m. on September 28, 2007.
The replay can be accessed by dialing (416) 640-1917 or (877) 289-8525 and
entering passcode 21247803 followed by the number sign. A webcast replay will
also be available for 90 days by accessing a link through the Investor
Information section at
    The Issuer 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

    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 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.

For further information:

For further information: V. Michael Alverson, Chief Financial Officer,
Primary Energy Ventures, (630) 371-0639,

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