Allegheny Warns of Poor Condition
Shares of Allegheny Energy Inc. dropped about 9% after the company warned that a bankruptcy filing was possible without new financing.
The Hagerstown, Md., company reported Monday that it was in violation of a 1935 federal law that says a utility’s ratio of common stock to total capitalization must not fall below 28%. Agreements the company has with lenders depend on such compliance, and Allegheny said it must get permission from the Securities and Exchange Commission before it can resume efforts to borrow money.
Shares of Allegheny fell 83 cents to $8.48 on the New York Stock Exchange.
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