York reaches standstill agreement with bondholders

New York, Nov. 9 - York Research Corp. said it has entered into a standstill agreement with holders of more than two-thirds of its $150 million of 12% senior secured bonds due Oct. 30, 2007, issued by York Power Funding (Cayman) Ltd.

Under the agreement, holders said they will not seek acceleration of the bonds nor will they take any action over the bond collateral.

York agreed to provide information to the bondholders and to consult with them on its projects and in negotiations with other creditors.

The standstill agreement can be terminated on five days notice by holders of 51% of the outstanding principal of the bonds or earlier on a bankruptcy filing involving York or certain of its subsidiaries or the termination of an agreement to sell York's Trinidad Project to NRG Energy.

The agreement terminates in any case on Nov. 21 unless extended by mutual agreement.

York defaulted on the bonds when it failed to make the $10.345 million interest payment due Oct. 30 within the grace period expiring Nov. 9.

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