July 24, 2009

Poolbeg Borrowings & Green Party "Untruths"

  • Covanta seems to confirm the Green Party was telling totally innocent untruths before the June elections about funding for the waste-to-toxins incinerator.
The Green Untruth of may 2009 was immediately corrected by the Wall Street Journal.

Now in July 2009:
  • Covanta confirms it has borrowed a sum of money - the $389 million is equal to the estimated amount needed for the Poolbeg waste-to-toxins factory. A secret contract with the sharp business men at DCC no doubt makes it easy to borrow money in a depression- by transferring the big risks to Irish taxpayers.
  • Covanta's net debt is said to be $1.7 billion.
  • Liabilities for premature deaths are not mentioned.

Carefully worded Covanta press release clipping [22.07.2009]:

Our balance sheet was significantly strengthened by the $460 million convertible note financing completed during the quarter.

We added approximately $389 million to our unrestricted cash, after giving effect to underwriting discounts, offering expenses, proceeds from the issuance of warrants and the purchase of the convertible note hedge. The entire $300 million of our revolving credit facility continues to be available.

In the quarter, we paid down $72 million of debt, bringing our net debt to $1.7 billion (total debt less cash and restricted funds set aside explicitly for project debt principal repayment).


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