Printer Friendly

GITANO GROUP AND LENDERS SIGN AGREEMENT IN PRINCIPLE

 GITANO GROUP AND LENDERS SIGN AGREEMENT IN PRINCIPLE
 NEW YORK, April 2 /PRNewswire/ -- The Gitano Group, Inc. (NYSE: GIT)


said today that it had entered into an agreement in principle with its major lenders to modify and extend Gitano's various loan and letter of credit facilities. The company had previously announced that it was not in compliance with various provisions of its credit facilities, which would have to be amended.
 The amended bank credit facility totalling $300 million would, among other things, relax and modify various financial covenants and certain borrowing base tests, and increase the interest rate of loans made thereunder. Comparable changes will also be made in the company's $100 million senior note agreement. The amendments to the credit facility and the note agreements would be effective through Jan. 1, 1993. The aggregate credit available under the company's credit facilities, for both its domestic and foreign subsidiaries and senior notes, will total $449 million. The agreement in principle is subject to signing of the formal documentation satisfactory to the company and its lenders. There can be no assurance that definitive agreements will become effective.
 Haim Dabah, president and chief operating officer, stated, "We are pleased that our banks and note holders have been quite supportive of our efforts. The new credit agreements offer us the financial flexibility to complete our restructuring program and help us focus and grow our core Gitano business."
 The Gitano Group, Inc. is a major producer of branded, high-quality, affordable apparel to mass merchants and discounters. Gitano's products include fashion basic clothing for women, men and children, as well as intimate apparel and accessories. The average retail price of the company's apparel is under $20.
 Gitano licenses its brands for certain products such as socks, watches and athletic footwear. The company's other brands include Gloria Vanderbilt, which is sold to moderate department and specialty stores, and Regatta Sport, which is sold to upscale department and specialty stores, and catalogues.
 -0- 4/2/92
 /CONTACT: Stan Greenstein, CFO, 908-248-1220, or Gustave Birnberg, senior vice president, 212-564-6100, both of Gitano/
 (GIT) CO: Gitano Group Inc. ST: New York IN: REA SU: FNC


CK -- NY047 -- 4407 04/02/92 12:56 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 2, 1992
Words:365
Previous Article:SUN COMPANY DECLARES QUARTERLY DIVIDEND
Next Article:AMAX CALLS NOTES


Related Articles
GITANO GROUP REPORTS LOSS FROM OPERATIONS AND RESTRUCTURING IN 1991; TO ACCELERATE RESTRUCTURING; WILL RETURN TO PROFITABILITY
GITANO GROUP COMMENTS ON UNUSUAL TRADING ACTIVITY
GITANO GROUP ANNOUNCES LENDER REQUESTS PARTICIPATION IN SECURED DOMESTIC LOAN FACILITY
GITANO GROUP INC. REPORTS RESULTS
GITANO SELLS ACCESSORY NETWORK
GITANO GROUP NAMES GREGORY CHAIRMAN AND CEO; ANNOUNCES AGREEMENT WITH LENDERS
THE GITANO GROUP REPORTS RESULTS
GITANO GROUP ANNOUNCES COMPLETION OF DEBT EXTENSION
HONG KONG-BASED LENDER FOR DUTTON II, A SUBSIDIARY OF THE GITANO GROUP, APPOINTS RECEIVER

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters