The annual financial statements of Nýherji hf. for 2008 were published on 30 January and, as usual, have been endorsed without reservation by the company's auditors. In 2008 the ISK exchange rate dropped very substantially and the company's liabilities linked to foreign currencies have increased accordingly. As a consequence thereof, the company no longer satisfies the covenants in loan agreements specifying a minimum capital ratio or operating profit ratio. The company's annual report includes a comment from its auditors, referring to Note 19, where this is explained. Discussions held by company management with credit institutions on extending its loans are well advanced. Internal restructuring of the Nýherji group, together with the altered situation of the commercial banks, has delayed the negotiations, but the parties expect to achieve a positive result at the beginning of next month.