VANCOUVER -- 360networks today confirmed it is in full compliance with all covenants under the company's $1.2 billion senior secured credit facility. At the end of 2000, $350 million had been drawn under this facility. 360networks is currently drawing on the balance, as needed, to complete the development of a global fiber optic network. In response to a number of investor inquiries, 360networks also confirmed it intends to meet interest payments under its debt obligations.

"As a result of cash on hand, sales contracts with customers and credit facilities available to us, we are comfortable that we can meet such obligations," said Vanessa Wittman, chief financial officer of 360networks. "We recognize that these are difficult markets for all of us, but 360networks has always met its debt obligations and we are taking appropriate internal measures to ensure this will not change going forward."

360networks Inc.