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AES to provide funds for upcoming Drax Energy coupon payment
New York, Aug. 21 - AES Corp. said it will provide funds so that its AES Drax Energy subsidiary has enough cash to make an Aug. 30 coupon payment of £15 million to noteholders.
Under terms of AES Drax's senior loan, AES Drax Holdings cannot make a distribution needed to pay the interest and AES Drax Energy has insufficient cash to do so because there is only £7 million in the debt service reserve account.
Covered by AES' intervention are AES Drax's two series of notes, its £135 million 11.25% senior secured notes due 2010 and $200 million 11.5% senior secured notes due 2010.
AES added that there is no assurance it will provide funding for future interest payments.
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