The Newark Group Obtains Debt Agreement Amendments
Sept. 13, 2011 - The Newark Group, Inc. said that it has reached an agreement with its term loan and asset-based lenders to provide relief to the company through amendments to its major credit facilities.
Within the deal, The Newark Group's lenders have agreed to:
- Suspend mandatory debt amortization payments for the next year;
- Suspend testing of existing financial maintenance covenants to allow the Company to execute on its restructuring plans;
- Allow the Company to obtain an additional $20 million in the form of supplemental loans under its existing term loan facility; and
- Waive all April 2011 and July 2011 defaults under the credit facilities.
"We are pleased that our lenders have the confidence in the Company to assist it in achieving the results contemplated in our recently announced restructuring plans," said Frank A. Papa, President and Chief Executive Officer of The Newark Group.
With headquarters in Cranford, New Jersey, The Newark Group, Inc. manufactures and sells recycled paperboard and paperboard products. The company operates in three segments: Paperboard, Converted Products and International.
SOURCE: The Newark Group, Inc.