Chic by H.I.S., Inc.NEW YORK--(BUSINESS WIRE)--Jan. 8, 1996--Chic by H.I.S., Inc., (NYSE NYSE See: New York Stock Exchange : JNS JNS Journal of Neurosurgery JNS Jump If No Sign JNS Narssaq, Greenland (Airport Code) JNS Journal of Neoplatonic Studies JNS Justification for New Start ) today announced that although it is current with respect to all principal and interest payments under all agreements with its lenders, it has breached a financial covenant covenant (kŭv`ənənt), agreement entered into voluntarily by two or more parties to do or refrain from doing certain acts. In the Bible and in theology the covenant is the agreement or engagement of God with man as revealed in the under its agreement with the holders of the company's $25 million senior notes due 2003 and $18 million senior notes due 2005. The covenant requires that the company maintain a specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. fixed charge coverage ratio for the four consecutive fiscal quarters ending on the last day of each fiscal quarter. The default under the agreement with the noteholders also constitutes a default under the company's agreement with its bank lenders by virtue of a cross-default Cross-default A provision under which default on one debt obligation triggers default on another debt obligation. provision in the bank agreement. The company is in full compliance with all of the other covenants under its note and bank agreements and is contacting its note holders and bank lenders with a view toward securing waivers of the breach under both agreements and obtaining amendments to such agreements. Chic by H.I.S., Inc. is a designer, manufacturer and marketer of moderately priced, basic style, denim jeans, casual pants and shorts. CONTACT: Chic by H.I.S. John Chin, 212/302-6400 |
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