KVR Kvaerner Asa

RNS Number:5693K
Kvaerner ASA
25 September 2001


Kvaerner Group - further update

LONDON, 25 SEPTEMBER 2001: Kvaerner, the Anglo-Norwegian engineering and
construction Group, said today that following its statement of 19 September
2001, it now had a financial solution in sight as part of its mission to
obtain the necessary short-term liquidity and an extensive refinancing.  This
effort had the objective of securing long-term financing - and thereby
securing the basis for further development of the business.  During the last
few days, the Board and Management have conducted negotiations with Kvaerner's
main banks with the intention of establishing such refinancing.  

As a basis for these negotiations, the Board has undertaken a new evaluation
of the Company's financial status.  Based on this evaluation, it has been
concluded that the underlying values of the Company significantly exceed its
debts.  The banks have accepted the Board's evaluation as a basis for their
further participation. 
 
Based on commitments from its lending banks early yesterday, together with
ongoing negotiations with the Board, it had reason to believe that further
commitments would be in place during the course of that day.  The Board
therefore requested the Oslo Stock Exchange and the London Listing Authority
to suspend all trading in Kvaerner equities, until final arrangements had been
made.  During the course of yesterday, however, it was not possible to secure
all the necessary agreements with the main banks by the close of the day.

Negotiations concerning the necessary loan facilities are based on the
assumption that a Rights Issue of NOK 1 billion, as a minimum, will be
successfully launched.

The Board intends to continue negotiations with its banks today, with a view
to concluding final agreements.  In parallel, the Group will hold discussions
with its largest shareholder, and other shareholders, in order to examine the
options for the future development of the Group.

Because of the uncertainty attached to various solutions and alternatives,
together with the risk of differing information circulating within the market,
the Board has again requested that the shares in Kvaerner be suspended until
the Company is in a position to provide further definitive information to the
market.


For more information: 

Paul Emberley, Vice President Group Communications: +44 (0)20 7339 1035 or 
+44 (0)7768 813090.

Notes to editors:  Kvaerner is a world-class Anglo-Norwegian engineering and
construction Group.  It meets the needs of its customers by adding value to
their business - through the provision of innovative, cost-effective solutions
- for challenges in the hydrocarbons, process and metals industries.  The
Group's activities are currently organised in two core business areas: E&C
(Engineering and Construction), and Oil & Gas.  Kvaerner is a Norwegian
registered business, but has a London, UK-based international headquarters. 
The Group has annual revenues in excess of US$6 billion, with some 35,000
permanent staff located in almost 35 countries throughout Europe, Africa, Asia
and the Americas. 

Kvaerner Asa (LSE:KVR)
Historical Stock Chart
From May 2024 to Jun 2024

Kvaerner Asa (LSE:KVR)
Historical Stock Chart
From Jun 2023 to Jun 2024