(BSNS WIRE) Covol Technologies Inc. Resolves Outstanding Debt Associated
Covol Technologies Inc. Resolves Outstanding Debt Associated With Its Wash
Plant Located in Central Utah
Business Editors
LEHI, Utah--(BUSINESS WIRE)--Feb. 9, 2000--Covol Technologies
Inc. (NASDAQ:CVOL), Wednesday announced that it has restructured its
outstanding debt associated with the construction of its wash plant
located in Price, Utah.
The original principal and accrued interest, as of Feb. 4, 2000
totaled $4,927,000. The creditor has agreed to accept the company's
note receivable of $2,965,000 from the sale of its Utah No. l
synthetic fuel facility as partial payment on the debt and to extend
the due date of the remaining balance of $l,962,000, until Oct. 31,
2000.
The remaining balance will bear interest at 6 percent until paid.
Steven G. Stewart, chief financial officer, commented, "We are
pleased that we were able to restructure the wash plant debt for three
reasons. First, Covol realized $2,965,000 immediately, the full value
on its note receivable, that otherwise would not have been collected
in full until December 2007.
"Secondly, the Company has been able to continue to reduce its
debt. And third, the remaining portion of the debt has been deferred
for over nine months. We appreciated the willingness of the creditor
in working with us to successfully restructure this debt."
Covol is a technology licensing company which engineers
industrial waste and other by-products into value added fuels and
resources.
Statements in this news release that relate to future plans,
possible transactions, or projected valuations are forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, including any statement with respect to anticipated
products to be produced using Covol's technology and Covol's strategy.
Such statements are subject to risks and uncertainties that could
cause actual results to differ materially. Although Covol believes
that its expectations are based on reasonable assumptions, there are a
number of business factors which singularly or combined may affect the
company's future operating results.
In addition to matters affecting Covol's industry or the coal
industry or the economy generally, factors which could cause actual
results to differ from expectations set forth in the above identified
forward-looking statements include but are not limited to the ability
to successfully negotiate terms and consummate proposed transactions,
ability to sell company owned synthetic fuel facilities on favorable
terms, including the ability to negotiate settlements of contract
terminations caused by facility relocations, ability to obtain
necessary capital or financing, ability to comply with covenants in
financing agreements, including financial performance criteria,
ability to conserve capital through cost reductions until operating
revenues exceed expenses, ability of licensees to market synthetic
fuel produced, generating royalties for Covol, ability of licensees to
achieve expected production levels at the synthetic fuel facilities,
favorable IRS tax treatment, availability of natural resources and
suitable raw materials, ability to locate appropriate sites for
facilities, ability of Covol to complete specific research and
development projects, and the commercial viability of Covol's
technologies.
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CONTACT: Covol Technologies Inc., Lehi
Sharon Madden, 80l/768-4481 or 801/562-1362
E-mail: smadden@covol.com
Web site: www.covol.com
KEYWORD: UTAH
INDUSTRY KEYWORD: ENERGY ENVIRONMENT
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