Troubled Bermuda-based insurer Trenwick Group Ltd. has been thrown a lifeline by its creditors who have agreed to wait until August to be repaid.

Trenwick said it had reached an agreement with the beneficial holders of the 6.7 percent senior notes of its wholly owned subsidiary, Trenwick America Corporation, to extend the maturity date of the senior notes until August 1 and to waive the default occasioned when Trenwick America failed to pay principal and interest on the Senior Notes on April 1, 2003.

Under the terms of the agreement, Trenwick America had paid to the Senior Noteholders the $2.5 million in interest accrued through April 1, 2003. The agreement has been approved by the banks that have issued letters of credit on behalf of subsidiaries of Trenwick in support of its Lloyd's operations under a senior secured credit facility.

In addition, Trenwick stated that the letter of credit banks have waived the default under the senior secured credit facility which arose as a result of Trenwick America's failure to pay principal and interest on the Senior Notes on April 1.

Moody's Investors Service has withdrawn all debt and preferred stock ratings of Trenwick and its subsidiaries as a result of its failure to pay the $75 million principal payment due April 1 on its senior debt.