September 4, 1997
American ECO Pays Out $19.0 Million Note From
Chempower
Transaction
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE
NEWS
HOUSTON, TEXAS--Michael E. McGinnis, Chairman, President & CEO of
American Eco Corporation announced that American Eco has discharged
approximately $19.0 million in short term obligations which were part of the
purchase consideration for its recent acquisition of Chempower Inc., of
Akron, Ohio. The funds were available from working capital and from a
recently completed $65.0 million transaction with the Union Bank of
California, N.A. that refinanced American Eco's existing credit obligations.
Union Bank of California is among the thirty largest banks in the United States
and is owned by the Bank of Tokyo-Mitsubishi Ltd., the largest bank in the
world with offices in more than forty countries.
David Norris, Senior Vice-President and CFO of American Eco stated,
"American Eco is emerging from a series of acquisitions with a more flexible
and longer term conventional credit facility that provides increased working
capital for our various operating subsidiaries. The new credit facility and
payment of the Chempower short term note, will allow management to
capitalize on market opportunities, while at the same time, giving American
Eco the financial structure and Balance Sheet that will allow better
management of each of the businesses."
American Eco is a leading North American provider of single source
construction, engineering, management, maintenance, and environmental
remediation services in the refining, petrochemical, utility, and forest products
industries.
FOR FURTHER INFORMATION PLEASE CONTACT:
American Eco Corporation - Houston, Texas David Norris Senior
Vice-President & CFO (888) 774-3246 or American Eco Corporation -
Houston, Texas Cindy Jackson Director of Investor Relations (888)
774-3246
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