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HAMILTON, Bermuda, July 1, 2002 -- Foster Wheeler Ltd. has obtained further extensions through July 31 of both its waiver under its current revolving credit facility and the forbearance of remedies for its lease financing facility.
The company signed a term sheet with its bank lending group for a $289.9 million bank credit facility on June 5, 2002. This further extension of its current facility is necessary in order to finalize the terms of a definitive agreement.
"We are making good progress in negotiating the final agreement and meeting the conditions specified in the term sheet," said Raymond J. Milchovich, Foster Wheeler's chairman, president and CEO. "We expect that finalization of our senior credit facility will be completed early in the third quarter."
Separately, the company announced that it is exercising its right to defer the payment of interest on the Junior Subordinated Debentures by extending the interest period of such debentures for three quarterly periods from January 15, 2002 until October 15, 2002. This will defer the dividend on the FW Preferred Capital Trust I 9% Preferred Securities for the same time period, which includes deferral of the July 15, 2002 payment.
According to a company spokesperson, the decision to defer interest payments was part of ongoing efforts to realign the company's capital structure.
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