The Shaw Group amends loan, changes financial covenants to avoid potential defaults

By Sara Rosenberg

New York, Feb. 4 - The Shaw Group amended its $300 million revolving credit facility, changing financial covenants and other terms to tackle potential defaults related to charges taken in the first quarter due to increased costs on three power projects.

"We are pleased with the continued commitment from our lenders in providing financial flexibility, which will allow us to continue to capitalize on new and emerging opportunities in the markets we serve," said Robert L. Belk, executive vice president and chief financial officer, in a company news release.

"We believe the actions we have taken to strengthen our balance sheet and improve our liquidity have resulted in a stronger competitive position for our company and a more fortified platform on which to build long-term value for our stakeholders."

The Shaw Group is a Baton Rouge, La., provider of engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services.

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