NexCen lender grants another three weeks
Meredith Schwartz -- Home Textiles Today, July 18, 2008
New York – Troubled brand licensing and franchise firm NexCen Brands has received a three-week extension, through Aug. 8, to resolve disagreements with its main lender, BTMU Capital.
NexCen and BTMU are still at odds over whether NexCen is in default on various covenants; in the meantime the two are aiming to forge a restructured financial relationship, according to a form 8-K filed by NexCen yesterday with the Securities and Exchange Commission.
“We are gratified by the ongoing support of our lender as we work together to develop a long-term financing solution for NexCen,” said NexCen ceo Robert D’Loren. “Importantly, the progress we have made in working with our lender toward the restructuring of our credit facility enables us to continue implementing our operating plans for both our license and franchise businesses.”
In reaching the extension, NexCen won a series of amendments to the existing credit facility that enable it to fund various business expenses – such as $4.6 million for accounts payable and working capital, and $1.1 million in management fees due its subsidiaries – as it continues to operate.
BTMU also won amendments that will see it paid about $2.6 million for interest on outstanding notes and some $418,000 for advisory services.
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