Pope & Talbot Announces Agreement with Lenders
07 8월 2007 - 7:41AM
Business Wire
Pope & Talbot, Inc. (NYSE:POP) today announced that it entered
into a forbearance agreement with its senior secured lenders to
extend access to liquidity provided by the revolving credit
facility under its senior secured credit agreement for six weeks
while it continues to explore options to improve its balance sheet.
The forbearance agreement requires the Company to expand those
efforts during the six-week forbearance period to include
soliciting offers to purchase all or substantially all of the
Company�s assets or equity interests. As Pope & Talbot
previously disclosed would be likely, it is out of compliance with
a financial covenant in its senior secured credit agreement
calculated as of June 30, 2007. The covenant requires the Company
to maintain a certain minimum EBITDA � generally earnings before
interest, taxes, depreciation and amortization with certain
additional modifications as set forth in the credit agreement. The
Company was unable to generate the EBITDA required under its credit
agreement for the four-quarter period ended June 30, 2007 and
therefore is in default under the credit agreement. Pope &
Talbot expects to report earnings for the second quarter of 2007
and file its Form 10-Q quarterly report on August 9, 2007. Pope
& Talbot has entered into a forbearance agreement dated as of
July 31, 2007 with its secured lenders. Pursuant to the agreement,
the lenders have agreed that, until September 17, 2007, the Company
will continue to have access to its revolving credit facility with
total availability of $67 million. The agreement also provides for
default rate interest to be paid effective July 1, 2007 and a
forbearance fee, and for the implementation of a mechanism, similar
to that which exists in other corporate asset-based loans, through
which cash in the Company�s deposit accounts will be used to repay
borrowings under the revolving credit facility on a daily basis and
correspondingly increase availability under the facility. Although
the Company may seek further forbearance or other relief from its
senior lenders when the current agreement expires on September 17,
2007, it cannot provide any assurance that it will be successful in
obtaining such further forbearance or other relief, or as to the
terms upon which such forbearance or other relief may be granted.
Even if the Company is successful in obtaining additional covenant
relief, it will continue to be challenged in its ability to
maintain adequate levels of liquidity relative to the size of its
operations. Accordingly, the Company is continuing to explore
alternatives to strengthen its balance sheet and generate cash,
including one or more possible asset sales or other capital
infusions, and is analyzing its ability to restructure its debt and
other liabilities. The Company has retained Rothschild Inc. to
assist in those efforts. Caution Regarding Forward-Looking
Statements: This press announcement and other Company
communications may contain statements relating to future
performance of the Company that are forward-looking statements.
These statements relate to the Company's future plans, objectives,
expectations and intentions and may be identified by words like
"believe," "expect," "may," "will," "should," "seek," or
"anticipate," and similar expressions. The Company cautions readers
that any such forward-looking statements are based on assumptions
that the Company believes are reasonable, but are subject to a wide
range of risks including, but not limited to, risks associated with
future financial results and liquidity including the Company's
continued ability to finance its operations in the normal course,
the continuation of the forbearance agreement without the
occurrence of a termination event thereunder or the potential
necessity for additional forbearance agreements, the possibility
that the Company may need to commence bankruptcy proceedings,
fluctuation of the borrowing base and other limitations that may
affect the Company's ability to borrow under its revolving credit
facilities or otherwise, the Company's relationship with and
payment terms provided by its trade creditors, additional financing
requirements, the results of renegotiating certain key commercial
agreements, the effect of commodity and raw material prices,
foreign currency fluctuations, the effect of U.S. housing market
conditions and other uncertainties previously detailed in the
Company's filings with the SEC. Due to these uncertainties, there
is an inherent risk that actual results will differ materially from
any forward-looking statements. The Company is under no obligation
to (and expressly disclaims any such obligation to) update or alter
any forward-looking statements whether as a result of new
information, future events or otherwise.
Pope Talbot (NYSE:POP)
과거 데이터 주식 차트
부터 8월(8) 2024 으로 9월(9) 2024
Pope Talbot (NYSE:POP)
과거 데이터 주식 차트
부터 9월(9) 2023 으로 9월(9) 2024
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