Capital Environmental Sells New York and Pennsylvania Assets

Apr 02, 2001, 01:00 ET from Capital Environmental Resource Inc.

    BURLINGTON, Ontario, April 2 /PRNewswire/ -- Capital Environmental
 Resource Inc. (Nasdaq: CERI) has entered into an agreement with Waste
 Management, Inc. for the sale of substantially all of its assets used in
 connection with its operations in Rochester, NY, Syracuse, NY and
 Williamsport, PA for a total cash purchase price of approximately $21,000,000.
     The net cash proceeds (after taking into account a holdback plus
 transaction and other related costs) from the transaction of approximately
 $16,500,000 are to be used to repay indebtedness of Capital to its senior
 lenders. In connection with this repayment, the senior lenders have agreed to
 modifications to Capital's credit facilities to exclude the effects of the
 transaction for the purposes of determining Capital's compliance with its
 financial covenants. In addition, the senior lenders have agreed that they
 will not take action under the credit facilities with respect to certain
 defaults by Capital provided that Capital satisfies certain conditions,
 including that it continues to make reasonable progress towards a transaction
 to reduce or refinance the credit facilities by June 15, 2001. Capital is
 presently in discussions with certain parties with respect to possible
 transactions that would satisfy this.
     Capital Environmental Resource Inc. is a regional integrated solid waste
 services company that provides collection, transfer, disposal and recycling
 services in markets in Canada and the northern United States. The Company's
 web site is http://www.capitalenvironmental.com.
 
     All currency references are in United States dollars
 
 

SOURCE Capital Environmental Resource Inc.
    BURLINGTON, Ontario, April 2 /PRNewswire/ -- Capital Environmental
 Resource Inc. (Nasdaq: CERI) has entered into an agreement with Waste
 Management, Inc. for the sale of substantially all of its assets used in
 connection with its operations in Rochester, NY, Syracuse, NY and
 Williamsport, PA for a total cash purchase price of approximately $21,000,000.
     The net cash proceeds (after taking into account a holdback plus
 transaction and other related costs) from the transaction of approximately
 $16,500,000 are to be used to repay indebtedness of Capital to its senior
 lenders. In connection with this repayment, the senior lenders have agreed to
 modifications to Capital's credit facilities to exclude the effects of the
 transaction for the purposes of determining Capital's compliance with its
 financial covenants. In addition, the senior lenders have agreed that they
 will not take action under the credit facilities with respect to certain
 defaults by Capital provided that Capital satisfies certain conditions,
 including that it continues to make reasonable progress towards a transaction
 to reduce or refinance the credit facilities by June 15, 2001. Capital is
 presently in discussions with certain parties with respect to possible
 transactions that would satisfy this.
     Capital Environmental Resource Inc. is a regional integrated solid waste
 services company that provides collection, transfer, disposal and recycling
 services in markets in Canada and the northern United States. The Company's
 web site is http://www.capitalenvironmental.com.
 
     All currency references are in United States dollars
 
 SOURCE  Capital Environmental Resource Inc.