Cogentrix gets extension of forbearance on credit facility

New York, July 29 - Cogentrix Energy, Inc. said it obtained an extension of the forbearance agreement for its corporate credit facility.

The forbearance now runs through Aug. 31, extended from July 31, the company said in a filing with the Securities and Exchange Commission.

The Charlotte, N.C. independent power producer obtained the forbearance on May 29. It was required because the upcoming maturity of the credit facility in October 2003 led Cogentrix's auditors to include a going-concern warning in their report on its financial statements. That warning in turn triggered an event of default under the credit facility.

Under the forbearance agreement, the lenders agreed not to terminate their commitments or accelerate outstanding borrowings. In addition, Cogentrix is able to continue to convert drawings under outstanding letters of credit into borrowings.

Cogentrix said it currently has $154.1 million drawn on the credit facility.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.