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May 7, 2001
Court motions, pay cuts and sea trials at FGH
"These highly unprofitable contracts," says the statement, "caused substantial losses to the company, and led to the company's recent Chapter 11 filing."
FGH says that "negotiations for the completion of these two undnprofitable contracts with the surety, Fireman's Fund Insurance Company, a wholly owned subsidiary of the German insurance company, Allianz, led to the filing of this rejection motion.."
In a separate release, FGH said that "all senior management members have taken substantial salary cuts, in some cases as high as 40%, in an effort to aggressively assist the company in its reaorganization efforts."
On a more positive note, Ocean Rig ASA today announced that its first rig, Leiv Eiriksson, was to leave the Friede Goldman yard in Pascagoula, Mississippi this morningto commence a period of sea trials. FGH subsequently confirmed the rig's departure.