Kvaerner PLC, together with Yukos, a group of Norwegian and international banks, including DnB, Nordea, and Norsk Tillitsmann on behalf of the Norwegian bond and certificate owners, has agreed to propose a complete solution for solving Kvaerner’s financial problems. To this effect, an underwriting consortium of NOK 3 billion has been established to implement a rights offering. Kvaerner has also entered into a deal with the lenders to propose a conversion of approximately NOK 4.5 billion in debt into a subordinate convertible note. Furthermore, it is presumed that existing loans will be rescheduled to the end of 2004. The proposal implies a long-term solution that will re-establish confidence in the group – among its customers, sub-contractors, financial institutions, and employees.