EveryWare Receives New Extension on Loan Agreement
LANCASTER, Ohio-EveryWare Global has gained a further extension for the forbearance on its term loan agreement with the agreement's administrative agent and other lenders, this one to last through July 22.
The extension provides that the parties to the forbearance agreement, which constitute more than 50 percent of the lenders under the term loan agreement, will continue to forbear from exercising the rights and remedies they were entitled to after default "events" on the agreement earlier this year. According to an EveryWare statement, these events occurred when it failed to comply with the maximum consolidated leverage ratio covenant and the minimum interest coverage covenant for the fiscal quarters ending on March 31 and June 31.
This is the second extension on the forbearance since the beginning of July. Earlier this month, EveryWare was granted an extension which lasted through July 15.
In addition, EveryWare said it has entered into an amendment to its asset-backed loan agreement which has extended a temporary increase in the company's available liquidity from June 30 to the earlier of July 22 or the date on which the forbearance agreement terminates. If the forbearance agreement terminates before July 22, it will bring a default event under the asset-backed loan agreement.