Following discoveries in 2002, of unauthorized and unreported financial transactions and declines in the operating revenues of the Aquarium, the Board has taken significant steps to improve the financial condition of the Aquarium including operational improvements, marketing improvements, and a major capital campaign. The Forbearance Agreement between the Bond Trustee and the Aquarium continues an earlier arrangement between the two parties. The Aquarium has agreed to meet certain revenue and operational expense targets. The Forbearance Agreement is an important step in the Board's continuing efforts to improve the Aquarium's financial condition.
Under the terms of the Forbearance Agreement, the Bond Trustee has agreed not to take any legal action against the Aquarium with respect to the Bonds through July 1, 2004, unless the Aquarium fails to meet its revenue and expense targets under the Agreement. The Bond Trustee has continued to make interest payments on the Bonds from established reserves.
The Aquarium will continue to take steps to improve its financial condition. During the course of the next several months, the Aquarium will be evaluating alternatives to restructure the payment and other obligations of the Aquarium with respect to the Bonds.
The board of directors has expressed thanks to bondholders for their continued support for the Aquarium and to the public for their ongoing assistance through attendance, volunteerism and donations.