Freshly Minted – June 17, 1999

HIGH YIELD

Notes from the Navigator Bondholder meeting June 15, 1999

The gas market is low and Navigator Gas has no T/C on their vessel up for delivery in August. We will either see the vessels operating in the spot market, in a pool(maybe Bergesen), or on 1-year T/C due to the uncertain market conditions. Marlink is marketing the vessels and there is interest due to the flexibility of the vessels. The vessels have a very efficient cost base compared to other Bergesen vessels (12,000cbm) but the company needs T/C rates above $517′ to not draw the letter of credit and default on the notes before 2005. Navigator Gas has not made any pool agreements with Bergesen.

This weeks spot-market report(June 16,1999) from Fearnleys:

Vsl-size This week Last week High/low 99

35,600cbm

$570′

$480′/$570′

24,000cbm

$525′

$480′/$525

15,000cbm

$310′

$315′

$310′/$420′

8,200cbm (ETH)

$300′

$310′

$300′/$340′

Bjørn Q. has been in discussions with Bergesen(B) in April concerning the possibility for a pool cooperation, however the pool-key offered by B was not acceptable and there has not been any major activity in further negotiations. The recent accusations in the press are false! However, we are confident Marlink will continue the dialogue with B as delivery gets closer, which was also confirmed by Bjørn during the Q&A session.

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