EXHIBIT 10.23

FIRST UNION NATIONAL BANK
NC0735
Capital Markets Group
301 South College Street
Charlotte, North Carolina 28288-0735



                                                                    May 20, 1998

Everest Reinsurance Company
477 Martinsville Road
P.O. Box 830
Liberty Comer, New Jersey 07938-0830

Attention:  Stephen Limauro, Vice President and Comptroller

Re: Request for Extension of Maturity Date

Dear Steve:

Pursuant to that certain Credit Agreement between Everest Reinsurance  Holdings,
Inc.  ("Everest")  and First Union  National Bank ("Bank")  dated as of June 16,
1997  (the  "Credit  Agreement"),  the Bank  extends  Everest  a  $50,000,000.00
Revolving  Credit Facility which matures on the Maturity Date (as defined in the
Credit  Agreement),  i.e.,  June  15,  1998.  Pursuant  to  Section  2.16 of the
Agreement,  Everest has requested that the Bank extend the initial Maturity Date
by 364  calendar  days to June 12,  1999.  The Bank is  willing  to  extend  the
Maturity  Date to June 14, 1999,  provided,  however,  that Everest and the Bank
agree to the following:

         1. All of the terms and  conditions of the Credit  Agreement  remain in
         full force and effect without  amendment  except that the Maturity Date
         as extended is now June 12, 1999;

         2.  Everest  certifies  (a)  that  each  of  the   representations  and
         warranties of Everest  contained in ARTICLE IV of the Credit  Agreement
         and in the other Credit  Documents  are true and  correct,  on the date
         hereof  with the same  effect,  as  though  made on and as of such date
         (except where such  representation  or warranty  speaks as of specified
         date) and (b) that no default or Event of Default has  occurred  and is
         continuing on the date hereof, and

         3. In the event,  pursuant to Section 2.16,  Everest requests a further
         extension  of the  Maturity  Date,  the Bank shall,  in addition to all
         other conditions which the Credit Agreement may provide, condition such
         extension  upon  Everest  Re  (as  defined  in  the  Credit  Agreement)
         maintaining  for the period  requested a larger  Statutory  Surplus (as
         defined in the Credit  Agreement),  and shall  require  that the Credit
         Agreement's Section 6.2 be amended  accordingly.  Presently the Bank is
         considering  a  Statutory   Surplus  which  would  be  the  greater  of
         $575,000,000  or  seventy-five  (75%) percent of the Statutory  Surplus
         shown on Everest Re's latest Annual Statement (as defined in the Credit
         Agreement) available for consideration at the time the Maturity Date is
         requested to be extended.


Please indicate Everest's  acknowledgment of and agreement herewith by executing
and dating the enclosed copy of this letter as indicated  below and returning it
to me not later than June 30, 1998.

                                              Sincerely,

                                              FIRST UNION NATIONAL BANK



                                              By:  /S/ GAIL GOLIGHTLY
                                                   ------------------
                                                   Gail Golightly
                                                   Senior Vice President





Acknowledged and Agreed this 27TH day of MAY, 1998


EVEREST REINSURANCE HOLDINGS, INC.

By:/S/ STEPHEN L. LIMAURO
   ----------------------
   Stephen L. Limauro
   Vice President and Comptroller