IT Group Signs Financing Agreement with Shaw

Date: January 17, 2002

Source: News Room

The IT Group, Inc. has signed a letter of intent with The Shaw Group Inc. (NYSE: SGR) regarding a proposed transaction in which Shaw would acquire substantially all of IT's assets in exchange for approximately $105 million and the assumption of certain liabilities. The company estimates the transaction to have a value of approximately $160 million to $200 million. In addition, The IT Group announced that the company has sought relief under chapter 11. In connection with these filings and the proposed transaction with Shaw, Shaw has agreed in principle to provide The IT Group with a debtor-in-possession credit facility of up to $75 million, $25 million of which will be available to The IT Group upon initial bankruptcy court approval. More information:

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