York files for bankruptcy

New York, June 7 - York Research Corp. said it reached agreement with an informal committee of noteholders on a restructuring and filed for bankruptcy under Chapter 11.

The agreement is with investors owning 99% of the $150 million 12% senior secured bonds due Oct. 30, 2007 issued by York Power Funding (Cayman) Ltd.

As part of the agreement, a York subsidiary will provide debtor-in-possession financing to York with the indenture trustee for the portfolio bonds acting as agent. The DIP facility expires in four months.

Under the restructuring plan, York's development projects and some other assets will be spun off to a new company, Jasper Energy LLC, controlled by York's current management and owned by York creditors and management.

York's existing common stock will be canceled.

The consenting bondholders have agreed to finance Jasper through May 2003.

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