Vancouver-headquartered Methanex - the world's largest producer and marketer of methanol - today announced it had successfully completed its "solicitation of consents" to amending the Indenture relating to its August 2005 Notes.

As a result, Methanex may not now make any restricted payment if, as a result, the corporation's consolidated net worth (CNW), which approximates shareholders' equity, will be less than $US850 million.

After giving effect to the amendment and last month's write-downs, the corporation's CNW was, at September 30, 2003, approximately $US968 million.

Methanex said this amendment would allow it to maintain its financial flexibility, notwithstanding any CNW reductions.

Last month Methanex said it was accelerating the non-cash write-downs of its gas-strapped New Zealand and expensive Alberta methanol plants. The combined before and after-tax charge, of approximately $US130 million for the last 2003 quarter, was significantly more than the previous total annual depreciation of $US30 million.

Methanex president Bruce Aitken said the write-downs reflected the changed economics for gas in New Zealand and North America.

Aitken told EnergyReview.Net that Methanex NZ was continuing to discuss buying further possible gas from the Maui, McKee and Mangahewa fields, but had not closed any agreements.

He also confirmed the Methanex Perth office had now closed, following the September board decision not to proceed with construction of a 1.3 million tonne methanol plant on the Burrup Peninsula in Western Australia.