Anacomp(R) Announces New Agreement in Principle With Its Senior Bank Group;Also Enters Discussions With Noteholder Group
SAN DIEGO, Oct. 31 /PRNewswire/ -- Anacomp, Inc. (OTC Bulletin Board: ANCO) today announced that it has reached an agreement in principle with its senior bank lenders providing the company with continued access to its senior revolving credit facility for an additional four months, including the ability to make limited additional borrowings under the credit facility.
The company also announced that it has entered into discussions with a group of its senior subordinated noteholders through that group's financial and legal advisors. The advisors represent holders of a large portion of Anacomp's total of approximately $310 million of the senior subordinated debt.
As previously reported, Anacomp did not make its interest-only payment on the senior subordinated debt due on October 1, 2000, and has retained Donaldson, Lufkin & Jenrette to serve as advisors regarding financial initiatives, including a debt restructuring, as well as to explore other possible strategic alternatives.
Anacomp further announced that it has negotiated a termination of its long-term lease for its Poway, CA headquarters facility, and has entered into a sublease for significantly less space. The re-negotiation of the lease follows the cessation of the company's manufacturing business and significantly reduces the associated cost to the company. The company expects the annual savings from the reduction in its occupancy in this facility to be approximately $3 million.
Anacomp also announced that Richard D. Jackson, who served as interim CEO from May until Phil Smoot's appointment as CEO in July, resigned as a director of the company, effective October 4, 2000. Mr. Jackson also previously served as co-chairman of Anacomp's Board. |
