|
Allegheny Energy will likely seek bankruptcy protection if negotiations with its lenders fall apart. The company has lost $334
million in the first nine months of this year. .
.Allegheny Energy provides electricity and natural gas to about one-point-seven million customers in Maryland, Ohio,
Pennsylvania, Virginia and West Virginia.
Allegheny Energy
Inc. said Thursday it
would likely seek
bankruptcy protection
if it can't agree with
lenders on new credit
terms.
Allegheny is reeling from the downturn in energy trading following
the collapse of Enron Corp. Allegheny borrowed heavily last year
to buy Merrill Lynch & Co.'s energy-trading business for $490
million. Now it is fighting lawsuits, debt problems and declining
revenues.
Earlier this month, Allegheny suspended the cash dividend on its
common stock to save about $54 million in the fourth quarter.
The company previously announced cost-cutting steps that
included cutting 600 jobs and canceling the development of
several generating plants. | 
