FGH Lenders Demand Repayment of $85.7 Million

Friede Goldman Halter (FGH) has received a Notice of Continuing Events of Default and Demand for Payment, from Foothill Capital Corporation, under which Foothill demands the immediate payment of $85.7 million, plus interest and various other costs, within five days of the Notice. FGH also announced that it would not make the interest payment due on March 15, 2001, on its $185 million principal amount of 4.5 percent convertible notes. The 30-day grace period provided under the indenture relating to the convertible notes expires today (April 16).