NexCen Gains Liquidity, D'Loren Resigns
September 1, 2008-- Home Textiles Today,
Robert D'Loren has resigned as ceo of brand management firm NexCen Brands, and been replaced in that position by evp and cfo Kenneth Hall. D'Loren also resigned from the board of directors.
NexCen chairman David Oros said, "Ken has been instrumental in completing the restructuring of the company's financing arrangements and we are confident in his ability to lead NexCen as the company continues to execute the business restructuring plan initiated in May, which focuses on the franchising business."
Hall joined NexCen in March, replacing the resigning David Meister in the cfo role. NexCen said it will search for a new cfo.
The company also said that under a newly restructured bank credit facility with BTMU Capital it gains operating liquidity; NexCen also received a waiver of various past lending covenant defaults and alleged defaults.
The amended and restated borrowing, security and related agreements with BTMU "replace all of the prior bank credit agreements and significantly revise the terms of the outstanding borrowings, which total $175.7 million," NexCen said.
While the new facility reduces NexCen's mandatory principal payments, it also increases interest obligations and "substantially tightens the covenants and events of default," the company stated, adding, "No additional borrowings are permitted and the facility remains secured by substantially all of the assets of the borrower subsidiaries."
The outstanding loans have been restructured into three separate tranches in the amount of $47.6 million maturing on Jan. 1, 2010, $41.7 million maturing on July 31, 2011 and the remaining $86.3 million maturing on July 31, 2013.
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