York Research to file for Chapter 11

New York, May 29 - York Research Corp. said it expects to file for protection under Chapter 11 of the U.S. Bankruptcy Code shortly.

Although the New York, N.Y.-based company said it is negotiating with an informal committee of bondholders over funding for its bankruptcy, York said it will soon be unable to continue operations, regardless of the success or otherwise of these negotiations.

As previously announced, the $150 million 12% senior secured bonds due Oct. 30, 2007 issued by York Power Funding (Cayman) Ltd. and secured by all of York's operating projects are in default and an involuntary bankruptcy petition was previously filed against York by certain creditors of York's 85%-owned subsidiary, North American Energy Conservation, Inc., which is in a Chapter 7 bankruptcy proceeding.

York added that holders of its common stock are expected to receive nothing.

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