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Caracas, April
30, 2001… International Briquettes Holding reported that on April
27, 2001 the lenders to Orinoco Iron, its 50%-owned affiliate,
accelerated the maturity of principal and interest outstanding
under Orinoco Iron's bank credit facility (approximately US$ 623,4
million), and also made demand on its guarantors, including Venprecar,
a subsidiary of IBH. The lenders have advised Orinoco Iron and
its guarantors that, notwithstanding this acceleration, they continue
to be willing to discuss a possible restructuring of the Orinoco
Iron loans.
Furthermore,
the lenders have directed the trustee to refrain, for the time
being, from taking control of the funds held or received in the
accounts of Orinoco Iron and RDI, thereby allowing Orinoco Iron
and RDI continued access to the cash required for operations.
Discussions
with the lenders and other interested parties are continuing,
but no assurance can be given as to whether and if so when, an
agreement on the restructuring of the Orinoco Iron loans will
be reached or as to the terms or impact of any such agreement.
This press
release contains statements about future events and financial
results that are forward-looking and subject to substantial risks
and uncertainties. Actual results could differ materially from
those indicated in such forward-looking statements. Factors which
may cause actual results to differ materially from those discussed
include economic considerations that could affect demand for HBI,
competition, general economic conditions in Venezuela and in the
global steel industry, the availability and terms of financing
and the risk factors set forth in IBH's various filings with the
U.S. Securities and Exchange Commission and the Comisión Nacional
de Valores of Venezuela. IBH undertakes no obligation to revise
these forward-looking statements to reflect events or circumstances
after the date hereof, and claims the protection of the safe harbor
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995.
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