Mar 11, 2004 3:52:00 PM

Ridgeland, MS, MAR 11, 2004 (EventX/Knobias.com via COMTEX) --

Covanta Energy Corporation (OTC: CVGYQ) filed an 8-K on 3/11, in which the Company reported that on 3/10, it and DHC closed the DHC Transaction. Under the terms of the DHC Agreement, DHC purchased 100% of Covanta's equity for approximately $30 million in cash. In addition, new revolving credit and letter of credit facilities for Covanta's domestic and international operations were provided by certain of Covanta's current secured bank lenders and a group of additional lenders organized by DHC.

DHC and Covanta also entered into a Tax Sharing Agreement pursuant to which Covanta's share of DHC's consolidated group federal tax liability for taxable years ending after the effective date will be computed taking into account a specified portion of DHC's net operating losses, and DHC will have an obligation to indemnify and hold harmless Covanta for its tax liability should such net operating losses not be available.