Kvaerner Sees Basis for a Going Concern

Kvaerner, the international engineering and construction Group, today said that its Board, in an extraordinary meeting last night, decided that there is a basis for continuing operations until shareholders vote over the proposed refinancing of the Group at an Extraordinary General Meeting on November 29. In negotiations over the last two days, a basis has been established for the necessary funding of the Group until the end of November – amounting to NOK 250 million. The necessary liquidity will be secured through new loans from the Group’s major banks and, additionally, an amendment to the payment terms for a major ongoing project. The new loans will be established against a standstill agreement previously negotiated as part of the long-term refinancing. It is expected that the standstill agreement will ultimately be approved by Kvaerner’s lending syndicates before the end of tomorrow. In parallel, the Board has held talks with the Group’s largest shareholders with a view to seeking a refinancing arrangement that can gain maximum support from shareholders. A proposal put forward by Aker Maritime has been at the centre of these discussions. The Board concluded, however, that the proposal presented by Aker Maritime was not possible to develop into an acceptable solution, and would not subsequently secure support from other major shareholders or lenders.