AMWEST RESTRUCTURES BANK DEBT

Calabasas-based Amwest Insurance Group has reached an agreement with Union Bank of California, N.A. to restructure its outstanding $13,633,077 term note. The agreement is contingent on receiving approval from the Nebraska Department of Insurance. In exchange for the bank’s forgiveness of a portion of the outstanding debt, the restructuring will include a $2-million cash payment; the issuance of $2 million in non-voting, non-convertible preferred stock; the issuance of 5-year immediately exercisable warrants to purchase 250,000 shares of Amwest common stock at fair market value; and the pledge to the bank of the capital stock of the company’s insurance subsidiaries to secure the company’s obligations under the preferred stock. Other terms were not disclosed. Amwest is an insurance holding company underwriting surety and property and casualty insurance through Amwest Surety Insurance Company and Far West Insurance Company.