Re: "still have a month or two for the bonds"
"The Company's debt instruments, principally its Credit Agreement, contain covenants restricting the Company's ability to sell assets, incur debt, pay dividends and make investments and require the Company to maintain certain financial ratios. As of the most recent covenant compliance reporting date, the Company failed to meet certain of the financial covenants under its Credit Agreement. The Company has obtained a waiver from its bank group for the financial covenants under the Credit Agreement through January 31, 2000. The Company expects to renegotiate financial covenants with its bank group based on its 2000 business plan. The entire outstanding balances under the bank term loan and revolving credit agreement have been classified as Current maturities of long-term debt in the accompanying condensed consolidated balance sheet as of October 2, 1999. If the Company ultimately fails to comply with the financial
covenants in its Credit Agreement, the lenders are entitled to demand payment and/or foreclose upon their collateral. If the lenders accelerate payment on the debt, a cross default will occur on the Company's other existing debt agreements, entitling these lenders to demand payment and/or foreclose upon their collateral. There can be no assurance that the Company would be able to obtain financing to satisfy the obligations to its lenders. Under such circumstances, the Company may be required to pursue other alternatives such as the sale of substantial assets or the issuance of new securities."
Source (SEC 10Q, 11/16/1999): sec.gov |
