(January 3 – 11:00 ET) – Queensway Financial Holdings Ltd. says that as a result of a cash shortfall it was unable to pay the $3.7 million senior debt principal payment due on Dec. 31, 2000.

Queensway is expecting that Trilon Financial Corpl, one of its senior lenders, will complete its due diligence within two weeks regarding a new demand loan facility which would provide the funding of the principal payment that was due on December 31.

The specialty insurer says company management continues to pursue alternative means of extending, refinancing or repaying the senior debt facility due Feb. 1, 2001. These alternatives include the sale of certain assets, and various debt and/or equity financing transactions.
-IE Staff