Atrium Announces Forbearance Agreement with Principal Lenders.DALLAS -- Atrium Companies, Inc. announced today that it has entered into a forbearance Refraining from doing something that one has a legal right to do. Giving of further time for repayment of an obligation or agreement; not to enforce claim at its due date. A delay in enforcing a legal right. agreement with its lenders that will provide Atrium with additional time to restructure its capital structure. Based on that agreement, Atrium has not made certain interest payments that were due on May 11, 2009 under its credit agreement with certain lenders and GE Business Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , Inc., as administrative agent. The company also reached a forbearance agreement under its accounts receivable financing Accounts Receivable Financing A type of asset-financing arrangement in which a company uses its receivables - which is money owed by customers - as collateral in a financing agreement. The company receives an amount that is equal to a reduced value of the receivables pledged. with General Electric Capital Corp., which has agreed to continue purchasing receivables during the forbearance period. Under these agreements, Atrium's lenders have agreed to refrain from exercising their default-related rights and remedies during the forbearance period. During this time, Atrium will work constructively with its creditor constituencies on a restructuring plan that will provide Atrium with additional operating capital Noun 1. operating capital - capital available for the operations of a firm (e.g. manufacturing or transportation) as distinct from financial transactions and long-term improvements capital, working capital - assets available for use in the production of further assets and flexibility. During the forbearance period, Atrium will operate in the normal course. Atrium will continue to provide quality products and excellent service to its customers in a timely manner and will continue to pay suppliers under customary terms. Statements in this press release, other than statements of historical information, are forward-looking statements that are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from those projected or suggested herein due to certain risks and uncertainties including, without limitation, operating risks. Those and other risks are described in Atrium's audited year-end financial statements, copies of which may be obtained upon request from the Company's Chief Financial Officer. |
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