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Safety-Kleen Finds Irregularities

Story Filed: Monday, March 13, 2000 5:47 PM EST

TORONTO (Reuters) - Safety-Kleen Corp. (SK.N), a U.S. waste management company, said on Monday that preliminary results of its internal probe indicated accounting irregularities affecting financial results dating back to 1998.

The company, in which Canada's Laidlaw Inc.(LDM.TO) has a 44 percent stake, said that its cash position will not be enough to fund current operations and that the company is in default under certain financial covenants of its credit agreements.

The company said it is unable to borrow under the agreements unless the defaults were waved. It said it is negotiating with its lenders and will not be in a position to comment further pending resolution of the talks.

The Securities and Exchange Commission has advised Safety-Kleen that a formal investigation has been initiated, the company said in a statement.

PriceWaterhouseCoopers LLP remains the auditor and is assisting Arthur Anderson with the investigation and the restatement of the company's financial statements.

On Monday, Safety-Kleen, based in Columbia, South Carolina, was down 3/16 to 1-11/16 on the New York Stock Exchange before its stock was halted.

Copyright ) 2000 Reuters Limited. All rights reserved.

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-- (Dee360Degree@aol.com), March 13, 2000