Tri-Union defers interest payment, expects to pay within grace period

New York, June 4 - Tri-Union Development Corp. said it made the required $20 million principal payment on its 12.5% senior secured notes due June 2006 but deferred the $8.1 million of interest to June 30.

The Houston company noted that it has 30 days to pay the interest before a default occurs.

Tri-Union said it intends to fund the interest payment from cash on hand, cash flows from operations and proceeds from the sale of additional oil and natural gas properties on the Texas Gulf Coast and the shallow waters of the Gulf of Mexico. It added that it has received and continues to negotiate terms on several property sale offers and a working capital revolver.

Following the $20 million principal payment, Tri-Union now has $110 million of its senior notes outstanding.

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