Bermuda-based Trenwick Group Ltd. announced that it has “reached a definitive agreement with the beneficial holders (the ‘Senior Noteholders’) of the 6.70% Senior Notes (the ‘Senior Notes’) of its wholly owned subsidiary, Trenwick America Corporation (‘Trenwick America), to extend the maturity date of the Senior Notes until August 1, 2003 and to waive the default occasioned when Trenwick America failed to pay principal and interest on the Senior Notes on April 1, 2003.”
The company had earlier announced a tentaive agreement with the noteholders. It said that under its terms “Trenwick America has paid to the Senior Noteholders all interest accrued through April 1, 2003, in the amount of $2,512,500.00.”
Trenwick also stated that the terms of the agreement have been approved by the banks that have issued letters of credit on behalf of subsidiaries of Trenwick in support of its Lloyd’s operations under a senior secured credit facility. In addition, Trenwick stated that the letter of credit banks have waived the default under the senior secured credit facility which arose as a result of Trenwick America’s failure to pay principal and interest on the Senior Notes on April 1, 2003.
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