Fitch Ratings Comments on Covanta Chapter 11 Filing.Business Editors NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of & CHICAGO--(BUSINESS WIRE)--April 11, 2002 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. continues its monitoring and review of the documents associated with the April 1, 2002 bankruptcy filing of Covanta Energy Corp. (Covanta) and various of its wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. . The bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. issued an interim order that allows Covanta and certain of its debtor subsidiaries included in the Chapter 11 filing, to continue to pay debt service, as well as maintain normal operations Generally and collectively, the broad functions that a combatant commander undertakes when assigned responsibility for a given geographic or functional area. Except as otherwise qualified in certain unified command plan paragraphs that relate to particular commands, "normal operations" of , pay critical vendors, and receive operating fees. Fitch remains concerned that the creditor's committee Creditor's committee A group representing firms that have claims on a company facing bankruptcy or extreme financial difficulty. may request changes to the debtor-in-possession (DIP) financing that could be detrimental to bondholders of Fitch rated waste-to-energy projects. A final hearing on the DIP order is scheduled for May 7, 2002. The ultimate outcome and effect of the bankruptcy on the timely repayment of the bonds has yet to be determined. The terms of the DIP financing provide for 20 non-debtor subsidiaries of Covanta to act as guarantors for the DIP financing. While the Haverhill project has not been included in the Chapter 11 filing, it has been named as a non-debtor subsidiary guarantor guarantor n. a person or entity that agrees to be responsible for another's debt or performance under a contract, if the other fails to pay or perform. (See: guarantee) GUARANTOR, contracts. He who makes a guaranty. 2. . Cash generated from the Haverhill project remains included in the consolidated cash management system and together with other unencumbered Unencumbered Property that is not subject to any creditor claims or liens. Notes: For example, if a house is owned free and clear (meaning the owner owes no mortgage to anyone), it is unencumbered. assets are to be included in revenues available to discharge the debt of the parent, Covanta. Fitch Ratings is evaluating any special risks that this may pose to the Haverhill project's bondholders. Fitch Ratings will continue to examine court filings and other information and will adjust ratings as warranted by such evaluations. Fitch's ratings of municipal bonds backed by waste-to-energy projects owned or leased by subsidiaries of Covanta are: -- Lee County, FL solid waste system refunding revenue bonds, series 2001 (insured: MBIA), unenhanced rating of 'A-' - Rating Watch Negative; -- Lee County, FL solid waste system revenue bonds, series 1995 (insured: MBIA), unenhanced rating of 'A-' - Rating Watch Negative; -- Northeast Maryland Waste Disposal Authority, MD solid waste revenue bonds (Montgomery County Resource Recovery Project), series 1993 A and B, unenhanced rating of 'AA-' - Rating Watch Negative; and Additionally, approximately $520 million of outstanding municipal bonds for projects serviced by Covanta and secured by payment obligations of certain public entities, remain on Rating Watch Negative or Evolving, as listed below, in recognition of possible operating and other risks that could result from Covanta's bankruptcy filing: -- Lee County, FL solid waste system refunding revenue bonds, series 2001 (insured: MBIA), unenhanced rating of 'A-' - Rating Watch Negative; -- Lee County, FL solid waste system revenue bonds, series 1995 (insured: MBIA), unenhanced rating of 'A-' - Rating Watch Negative; -- Northeast Maryland Waste Disposal Authority, MD solid waste revenue bonds (Montgomery County Resource Recovery Project), series 1993 A and B, unenhanced rating of 'AA-' - Rating Watch Negative; and For more information, see Fitch Ratings' earlier releases on this matter, available at the agency's web site: www.fitchratings.com: Fitch Ratings monitoring Municipal Solid Waste “Municipal waste” redirects here. For other uses, see Municipal waste (disambiguation). Municipal solid waste (MSW) is a waste type that includes predominantly household waste (domestic waste) with sometimes the addition of commercial wastes collected by a Debt in connection with Covanta Chapter 11 filing, April 2, 2002; Fitch Ratings Dwngrs $650MM Covanta Muni Solid Waste Debt to 'CC' from 'CCC' (March 1, 2002); Fitch Ratings Dwngrs $650MM Covanta Muni Solid Waste Debt' (Feb. 28, 2002); Fitch Ratings Lowers $650MM Muni Solid Waste Debt to 'B' (Jan. 30, 2002); 'Fitch Ratings Removes Rtg Wtch Neg On Montgomery Cnty MD Sol Sol, in Roman religion Sol (sŏl), in Roman religion, sun god. An ancient god of Mesopotamian origin, he was introduced (c.220) into Roman religion as Sol Invictus by emperor Heliogabalus. Wst Rev Bnds (Feb. 6, 2002); and Fitch Monitoring Solid Waste Bonds Connected With Covanta (Jan. 25, 2002). |
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