8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  April 3, 2006

THE AES CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-12291	54-1163725
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

4300 Wilson Boulevard, Suite 1100, Arlington, Virginia	22203
(Address of principal executive offices)	(zip code)

Registrant’s telephone number, including area code: (703) 522-1315

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01Other Events

On April 3, 2006, The AES Corporation (the “Company”) announced that it had defaulted on its $600 million senior unsecured credit facility due to the restatement of its 2004 financial statements. The credit facility is a syndicated loan and letter of credit facility lead arranged by Merrill Lynch. The Company obtained a waiver of the default on April 3, 2006. The credit facility will be used for general corporate purposes and to provide letters of credit to support AES’s investment commitment as well as the underlying funding for the equity portion of its investment in AES Maritza East 1 on an intermediate-term basis.

2

Item 9.01Financial Statements and Exhibits

(d)Exhibits

Exhibit No.	Description
99.1	Waiver No. 1 to the Credit Agreement dated as of March 31, 2006 among The AES Corporation as Borrower, Merrill Lynch Capital Corporation as Administrative Agent, Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Lead Arranger.

3

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		THE AES CORPORATION
		(Registrant)
		By:	/s/ Vincent W. Mathis
			Name:	Vincent W. Mathis
			Title:	Deputy General Counsel
Date:	April 3, 2006

4

EX-99.1

Exhibit 99.1

WAIVER NO. 1 TO CREDIT AGREEMENT

Dated as of April 3, 2006

WAIVER NO. 1 TO THE CREDIT AGREEMENT (this “Waiver”) among The AES Corporation, a Delaware corporation (the “Borrower”), the Banks listed on the signature pages hereto, MERRILL LYNCH BANK USA (a “Fronting Bank”), and MERRILL LYNCH CAPITAL CORPORATION, as administrative agent (the “Administrative Agent”).

PRELIMINARY STATEMENTS

(1)WHEREAS, the Borrower is party to a Credit Agreement dated as of March 29, 2006 (as amended, amended and restated, supplemented or otherwise modified up to the date hereof, the “Credit Agreement”; capitalized terms used herein but not defined shall be used herein as defined in the Credit Agreement) among the Borrower, the Banks, the Fronting Banks and the Administrative Agent;

(2)WHEREAS, the Borrower has requested that the Banks and the Fronting Banks agree to waive certain provisions of the Credit Agreement;

(3)WHEREAS, the Banks and the Fronting Banks have agreed, subject to the terms and conditions hereinafter set forth, to waive certain provisions of the Credit Agreement as set forth below; and

(4)WHEREAS, on April 3, 2006, the Borrower filed with the Securities and Exchange Commission a Current Report on Form 8-K (the “8-K”), which described restatements that the Borrower would be making with respect to its 2003 and 2004 fiscal years (collectively, the “Restatements”).

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the sufficiency and receipt of all of which is hereby acknowledged, the parties hereto hereby agree as follows:

SECTION 1.Waiver. As of the Effective Date, the Banks and the Fronting Banks hereby grant the following waiver under the Credit Agreement:

(a)Financial Information. The Banks and the Fronting Banks hereby (i) waive any Default or Event of Default existing on the date hereof under Section 6.01(d) of the Credit Agreement constituted by breaches of the representations or warranties made by the Borrower in Section 3.01(g), 4.05(a) or 4.13 of the Credit Agreement solely to the extent resulting from changes to the Borrower’s financial statements that are to be made as part of the Restatements to the extent such changes relate to matters disclosed in the 8-K and (ii) agree that any future breach resulting solely from such changes that occurs upon the Borrower remaking such representations or warranties shall not be considered a Default or Event of Default under Section 6.01(d) of the Credit Agreement.

SECTION 2.Conditions to Effectiveness. This Waiver shall become effective when, and only when, and as of the date (the “Effective Date”) on which (a) the Administrative Agent shall have received counterparts of this Waiver executed by the Borrower, the Fronting Banks and 100% of the Banks or, as to any of the Banks, advice satisfactory to the Administrative Agent that such Bank has executed this Waiver, (b) the Administrative Agent shall have received payment of all accrued and invoiced fees and expenses of the Administrative Agent (including the reasonable and accrued fees of counsel to the Administrative Agent invoiced on or prior to the date hereof), (c) the Administrative Agent shall have received a favorable opinion of the Deputy General Counsel of the Borrower regarding the due authorization, execution and delivery of this Waiver and other matters reasonably requested by the Administrative Agent and (d) the Administrative Agent shall have received a certificate signed by a duly authorized officer of the Borrower dated the Effective Date, to the effect that, after giving effect to this Waiver: (i) the representations and warranties contained in each of the Credit Agreement are true and correct in all material respects on and as of the Effective Date as though made on and as of such date (unless stated to relate solely to an earlier date, in which case such representations and warranties are true and correct in all material respects as of such earlier date); and (ii) no Default has occurred and is continuing.

This Waiver is subject to the provisions of Section 9.05 of the Credit Agreement.

SECTION 3.Representations and Warranties. The Borrower represents and warrants as follows:

(a)The representations and warranties contained in the Credit Agreement, after giving effect to this Waiver, are correct in all material respects on and as of the date of this Waiver, as though made on and as of such date (unless stated to relate solely to an earlier date, in which case such representations and warranties are true and correct in all material respects as of such earlier date).

(b)After giving effect to this Waiver, no Default has occurred and is continuing on the date hereof.

SECTION 4.Reference to and Effect on the Financing Documents. (a)  On and after the Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in any Notes to “the Agreement”, “thereunder”, “thereof”, or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement, as modified hereby.

(b)The Credit Agreement and any Notes, as specifically modified by this Waiver, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed.

(c)The execution, delivery and effectiveness of this Waiver shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Banks or the Fronting Banks, nor constitute a waiver of any provision of the Credit Agreement.

SECTION 5.GOVERNING LAW. THIS WAIVER AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED BY, AND CONSTRUED

AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

SECTION 6.WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS WAIVER OR THE ACTIONS OF THE COLLATERAL TRUSTEES OR THE AGENT IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF.

SECTION 7.Execution in Counterparts. This Waiver may be executed by one or more of the parties to this Waiver on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

SECTION 8.Costs and Expenses. The Borrower hereby agrees to pay all reasonable costs and expenses associated with the preparation, execution, delivery, administration, and enforcement of this Waiver, including, without limitation, the fees and expenses of the Administrative Agent’s counsel and other out-of-pocket expenses related hereto. Delivery of an executed counterpart of a signature page to this Waiver by telecopier shall be effective as delivery of a manually executed counterpart of this Waiver.

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be duly executed and delivered by their respective proper and duly authorized officers as of the day and year first above written.

THE AES CORPORATION, as Borrower
By:	/s/ Willard C. Hoogland
	Title:	V.P. & Treasurer
	Address:	4300 Wilson Boulevard
		Arlington, VA 22203
	Fax:	(703) 528-4510

MERRILL LYNCH CAPITAL CORPORATION, as Administrative Agent
By:	/s/ Carol Freely
	Title:	Vice President
	Address:	250 Vesey Street, 22nd Floor
		New York, NY  10080
	Fax:	(212) 738-1186
	Attention:
MERRILL LYNCH BANK USA, as a Fronting Bank
By:	/s/ Louis Alder
	Title:	Director
	Address:	15 W. South Temple, STE 300
		Salt Lake City, UT 84101
	Fax:	(801) 531-7470
	Attention:
MERRILL LYNCH CAPITAL CORPORATION, as a Bank
By:	/s/ Carol Freely
	Title:	Vice President
	Address:	250 Vesey Street, 22nd Floor
		New York, NY  10080
	Fax:	(212) 738-1186
	Attention: