Status regarding restructuring of the Cecon's bondloans

Reference is made to the announcement issued on 23 December 2010 regarding full subscription of the restructuring on a USD 100 million bond loan issued by Cecon ASA's subsidiaries ( the 2007 Bond Loan) and a USD 12.5 million bond loan (the 2009 Bond Loan) issued by Cecon ASA, as approved by the respective bondholders meetings on 10 December 2010 on the basis of a Term Sheet dated 8 October 2010 (the Restructuring). The long stop date for completion of the Restructuring was 31 January 2011.

Export Development Canada (EDC), as the first priority lender of a USD 200 million loan facility, would not provide a waiver of the existing defaults under the first priority loan. EDC has however agreed to provide a standstill preventing the exercise of existing events of defaults, for a period ending on 31 March 2011. In order to accommodate EDC's requirements changes will have to be made to the amended loan agreemenr and the term sheet for the Restructuring. With the exception of the changes required to accommodate EDC's requirements and certain clarifications no material changes will be made to the term sheet previously resolved by the respective bondholders' meetings on 10 December 2011. Subscribers in the offering completed in accordance with the resolutions of the bondholders meetings of 10 December 2010 are accordingly released from their obligations.

Shareholders representing 63% of the issued shares have approved the required changes to the term sheet and undertaken to vote in favour of same in a new shareholders' meeting. Cecon ASA believes it has the support of bondholders in the 2007 Bond Loan and the 2009 Bond Loan sufficient to approve the required changes to the term sheet and is in the process of obtaining undertakings from bondholders to vote in favour of the same in new bondholders' meetings, and to subscribe for at least USD 2 million of the contemplated Tranche A Bonds with warrants.   Furthermore Riulf Rustad and companies controlled and associated by him have confirmed subscription of USD 3 million in the contemplated Tranche A with warrants, on the basis of the revised term sheet. The board of directors of Cecon ASA will convene in a meeting on 31 January 2011 and it is expected that the revised term sheet will be resolved by the board and accordingly that a shareholders meeting and the respective bondholders meetings will be called as soon as practically possible thereafter. Assuming favourable resolutions of the revised term sheet by the respective bondholders meetings new subscriptions of USD 2 to 4 million in the Tranche A bonds with warrants will be requested from bondholders in the 2007 Bond Loan in a timely manner.The Company will provide updated information regarding the details of the process as soon as possible.

For further information, contact:
CFO Ivar H. Halvorsen   +47 48 13 22 45