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. Last Updated: 07/27/2016

Kvaerner Agrees to Yukos Bailout Plan

OSLO, Norway -- Kvaerner ASA, one of Norway's oldest and largest companies, confirmed late Tuesday it has agreed on emergency financing deals enabling it to avoid bankruptcy.

The fate of the construction and engineering group and its 35,000 employees in 35 countries had been in confusion earlier on Tuesday because its main shareholder, Yukos, had said Kvaerner was rescued, while the concern itself remained silent for hours.

British-Norwegian Kvaerner has raced from crisis to crisis in recent weeks, seeking to solve acute cash flow problems and stay out of bankruptcy court.

After days of talks with banks and key owners, Kvaerner announced a long-term solution had been reached. The plan was similar to the one announced earlier in the day by its key shareholder, oil company Yukos, which holds 22 percent of its stock.

Kvaerner said the agreement includes a new share offering worth 3 billion kroner ($341 million) guaranteed by Yukos, a conversion of 4.5 billion kroner in debt into notes that can be converted to shares, and rescheduling of Kvaerner's remaining debt until Dec. 31, 2004.

Yukos had said the deal included banks offering 200 million kroner in immediate working capital.

"This is a solution that mirrors the wishes of many parties who have genuinely wanted to find a long-term solution for Kvaerner," said board chairman Harald Arnkvaern. "Important shareholders, led by Yukos, have contributed to this solution."

Kvaerner said the agreement is contingent on approval by additional lenders and a two-thirds majority of stockholders at an extraordinary meeting on Friday.

Earlier Tuesday, the Oslo Stock Exchange suspended Kvaerner's shares due to differing information in the market.