Primary Energy Recycling Corporation Securityholders Approve Recapitalization

    OAK BROOK, IL, Aug. 10 /CNW/ - Primary Energy Recycling Corporation (TSX:
PRI.UN) (the "Company") announced today that its securityholders have approved
a plan of arrangement that, once effective, will result in the conversion of
all of the Company's outstanding 11.75% subordinated notes (the "Subordinated
Notes") into common shares of the Company (the "Common Shares") on the basis
of sixteen (16) Common Shares for every Cdn$2.50 principal amount of
Subordinated Notes and the consolidation of all of the outstanding Common
Shares (including those issued on the conversion) on the basis of one (1) new
Common Share for every seventeen (17) existing Common Shares (the
    At a special meeting of the Company's securityholders held today, proxies
representing approximately 59.56% of the outstanding Common Shares and
approximately 54.23% of the outstanding Subordinated Notes were voted and the
Recapitalization was approved by over 99% of the votes cast by shareholders
and over 99% of the aggregate principal amount of Subordinated Notes, in each
case present in person or represented by proxy at the meeting.
    The Recapitalization is subject to final approval of the Supreme Court of
British Columbia. The hearing in respect of the final order is scheduled to be
heard at 10:00 a.m. (Vancouver time) or soon thereafter on August 12, 2009 at
the Courthouse, 800 Smithe Street, Vancouver. Information about the hearing in
respect of the final order may be found in Appendices D and E of the Company's
management proxy circular with respect to the Recapitalization dated June 29,
2009. Provided that final approval of the court is obtained, and that all
other conditions to the completion of the Recapitalization are satisfied or
waived, including securing funding for repayment of or amending or extending
the Company's $135 million credit facility (the "Credit Facility"), in either
case on terms acceptable to the Board, the Recapitalization is expected to
close on or before August 24, 2009.
    This press release is not an offer to sell or the solicitation of an
offer to buy the new common shares issued in connection with the
Recapitalization. Such securities have not been and will not be registered
under the United States Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or an applicable
exemption from the registration requirements.

    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 the successful completion of the Recapitalization and refinancing,
amendment or extension of the Credit Facility 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,
except as required by applicable securities laws, 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. Primary Energy,
headquartered in Oak Brook, Illinois, indirectly owns and operates four
recycled energy projects and a 50 per cent 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 see

For further information:

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

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Primary Energy Recycling Corporation

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