Amadeusz Juskowiak

Zapata zos wont pay interest on debentures

Zapata Corp said it does not intend to pay the interest due March 15 on its 1014 pct subordinated debentures due 1997 or the interest due May One on its 1078 pct subordinated debentures due 2001

Zapata said the results of continuing discussions with its bank lenders and the companys future financial position will determine Zapatas ability to meet its obligations to holders of the subordinated debentures

The company said deferrals of payment obligations and covenant waivers provided by all of its bank lenders which were scheduled to expire February 28 have been extended through April 30

Zapata stopped paying interest on the debentures in April 1986

Reuter