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CHAMBERS ANNOUNCES AGREEMENT WITH LENDER GROUPS

 PITTSBURGH, July 9 /PRNewswire/ -- Chambers Development Company, Inc. (AMEX: CDVA, CDVB) today announced that is has executed agreements with its three principal lender groups.
 The agreements involve comprehensive amendments to Chambers' bank and senior note agreements. These amendments revise or eliminate certain terms and conditions of the original agreements and provide for additional terms and conditions with respect to future periods.
 John G. Rangos Sr., president and CEO of Chambers, said, "We are very pleased to have completed the negotiation of agreements with our lender groups. This has been a very thorough process involving our lenders and the experts retained by them. They have evaluated environmental audits and reviewed detailed business plans and other financial information regarding our company and its strategic plan. This important accomplishment clearly signals that Chambers has received support from its principal lenders for the restructuring actions we have taken to date and our business plan for the future."
 William Rodgers Jr., chief financial officer, said scheduled senior note principal payments over the next two years will be deferred to July 1, 1995. On that date, $75 million plus any of the deferred payments which remain unpaid will be due.
 Among other provisions of the agreements, Chambers will apply one-half of the net proceeds from the continued sale of non-core assets and any excess unrestricted cash balances to debt reductions at par. Interest rates on the loans remain at current levels. Rodgers added that there is no significant change in the original final maturity dates.
 Rangos said many of the factors are now present, including this agreement with the lender groups, which should help Chambers to continue its progress.
 He noted that Chambers has aggressively restructured from a company previously focused on expansion and growth to a company intent on becoming more profitable and efficient.
 "Going forward, our priority is to increase volumes going into our existing landfills so that we more fully utilize our substantial inventory of quality disposal capacity," Rangos said. "In addition, we are continuing to streamline operations by reducing overhead, lowering operating costs and selling non-strategic assets."
 Both Rangos and Rodgers indicated that they are pleased with the progress to date. They said the soon-to-be-released financial results for 1992 and the first quarter of 1993 will show that Chambers, as a result of the steps taken, has achieved a favorable trend in its operating performance. During the past 12 months, Chambers has reduced liabilities by nearly $100 million. Continual emphasis will be placed on reducing debt levels and improving the financial condition of the company.
 Rangos said, "Much has yet to be accomplished. However, the stage for our continued improvement has been set."
 Chambers also announced that George R. Johannes, executive vice president of finance, has resigned from the company. Rodgers will continue in his role as chief financial officer.
 Chambers Development Company, Inc., headquartered in Pittsburgh, is a leading environmental services firm involved in landfill, transfer station and recycling operations, as well as the collection, transportation and disposal of residential, commercial, non-hazardous industrial and medical wastes.
 -0- 7/9/93
 /CONTACT: Jim Leonard, media, 412-244-7560, or Lewis Nevins, financial, 412-244-6195, both of Chambers Development/
 (CDV)


CO: Chambers Development Company ST: Pennsylvania IN: ENV SU:

KC-CC -- PG014 -- 0104 07/09/93 17:59 EDT
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Publication:PR Newswire
Date:Jul 9, 1993
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