Perma-Fix
Provides Update on Matters Relating to its 2007 Financials
and
Receives Amendment from its Lender
ATLANTA
- April 8, 2008 — Perma-Fix Environmental Services, Inc. (NASDAQ:
PESI)
today
announced that its lender amended and modified the method of calculating the
fixed charge coverage ratio covenant contained in the loan agreement. With
receipt of this amendment and based on the company’s projections, Perma-Fix now
believes it will be able to demonstrate that it will comply with the fixed
charge coverage ratio contained in the company’s loan agreement during
2008.
Prior
to
receipt of the amendment, as discussed in the company’s 2007 Form 10-K (“2007
10-K”), Perma-Fix was unable to demonstrate that it could comply with the fixed
charge coverage ratio in its loan agreement as of the end of the first and
second quarters of 2008. As a result, approximately $11.4 million of long-term
debt was reclassified to current, the company reported a working capital deficit
of approximately $17.2 million, and certain of the company’s lenders’ had the
ability to accelerate Perma-Fix’s indebtedness under its credit facilities. As a
result, the company’s independent registered public auditors included a “going
concern” paragraph in their report covering Perma-Fix’s 2007 financial
statements.
This
press release contains “forward-looking statements” which are based largely on
the Company's expectations and are subject to various business risks and
uncertainties, certain of which are beyond the Company's control.
Forward-looking statements include, but are not limited to, “with receipt of
this amendment and based on our projections, we believe we are now able to
demonstrate that we will be able to comply with the fixed charged coverage
ratio
contained in our agreement during 2008.” These forward-looking statements are
intended to qualify for the safe harbors from liability established by the
Private Securities Litigation Reform Act of 1995. While the Company believes
the
expectations reflected in this news release are reasonable, it can give no
assurance such expectations will prove to be correct. There are a variety of
factors which could cause future outcomes to differ materially from those
described in this release, including, without limitation, future economic
conditions; industry conditions; competitive pressures; and our ability to
apply
and market our technologies; that neither the federal government nor any other
party to a subcontract involving the federal government terminates or
renegotiates any material contract granted to us prior to expiration of the
term
of the contract, as such contracts are generally terminable or renegotiable
on
30 day notice, at the government’s option; or the government or such other party
to a contract granted to us fails to abide by or comply with the contract or
to
deliver waste as anticipated under the contract; that Congress provides funding
for the new remediation projects; and the additional factors referred to under
"Special Note Regarding Forward-Looking Statements" of our 2007 Form 10-K.
The
Company makes no commitment to disclose any revisions to forward-looking
statements, or any facts, events or circumstances after the date hereof that
bear upon forward-looking statements.
Please
visit us on the World Wide Web at http://www.perma-fix.com.
Contacts:
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Dr.
Louis F. Centofanti, Chairman and CEO
|
David
K. Waldman-US Investor Relations
|
|
Perma-Fix
Environmental Services, Inc.
|
Crescendo
Communications, LLC
|
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(770)
587-5155
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(212)
671-1020 x101
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|
Herbert
Strauss-European Investor Relations
|
|
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herbert@eu-ir.com
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+43
316 296 316
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