Buckeye announces financial plan. (Nonwovens News).In response to weakened market conditions, Buckeye buckeye: see horse chestnut. buckeye Any of about 13 trees and shrubs of the genus Aesculus (family Hippocastanaceae), native to North America, southeastern Europe, and eastern Asia. Technologies, a Memphis, TN-based producer of airlaid nonwovens and fluff pulp material, has reached an agreement with its bank group on amendments to its existing $215 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. The amended agreement loosens financial covenants through June 2003 but increases its interest rate by 50 basis points to a current rate of 5.8%. In regard to Buckeye's business outlook, the company is in the process of reducing its finished product inventories to generate cash. The company is also taking a one-time restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of about $1 million, which will also adversely impact the current quarter. Consequently, Buckeye expects to experience a net loss of $4 million in the first quarter. However, signs point to a recovery in the pulp market and Buckeye expects its business results to begin improving in the second quarter, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. company executives. |
|
||||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion