Primary Energy Recycling Corporation Announces Likely Default to Credit Agreement and Suspension of Distributions

    OAK BROOK, IL, Nov. 6 /CNW/ - Primary Energy Recycling Corporation
(TSX: PRI.UN) has received preliminary inventory adjustment information from
the site host of its Harbor Coal facility. If this information proves to be
accurate, which the Company believes will be the case, the Company's financial
results for the period ended September 30, 2007 will demonstrate failure to
comply with the PERC Consolidated Leverage Ratio covenant and cause a default
under the Company's senior debt Credit Agreement. Under the terms of the
Credit Agreement, the Company will be precluded from paying interest to
holders of its Separate Subordinated Notes and from making distributions to
holders of its enhanced income securities ("EISs") unless such default is
waived by Senior Lenders. This situation results from the cumulative effect of
poor financial performance at the Harbor Coal facility during the past four
quarters and the financial impacts of the unplanned outages at the North Lake
facility earlier this year. John Prunkl, President of Primary Energy Ventures
LLC, the Manager of the Company, said "We have made the Senior Lenders aware
of the situation and will work diligently towards obtaining a waiver in the
event of a covenant default. While the timing and results of the waiver
process are uncertain, we are committed to ensuring the interests of our
shareholders are protected."
    The Company is scheduled to release the financial results for the period
ended September 30, 2007 on November 14, 2007 and plans to host an investor
conference call at 11:00 am EST that day. This subject will be more thoroughly
discussed and updated at that time.
    Each EIS consists of one common share of the Company (a "Common Share")
and one 11.75% subordinated note of the Company having a par value of
Cdn$ 2.50 (the "Subordinated Note"). The EISs trade on the Toronto Stock
Exchange under the symbol PRI.UN.
    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 .

    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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