The Board of Northern Offshore can announce that the Company is expected to be in a position to pay the interest due on the US $340 million bond, 1998 - 2005. The payment of interest will thereby be made within the remedy period.
The payment of the interest is made by drawing the Company's total cash position and by an arrangement of a short-term credit facility of US $2 million.
The Company has still not been able to arrange a refinancing package of the US $28 million in scheduled repayments, which becomes due during the next 60 days.
The Board is cautiously optimistic that a short- to medium-term extension/refinancing of these facilities can be achieved. There can, however, be no assurances given.