Quaker Fabric satisfies lenders, amends credit facility
March 23, 2006-- Home Textiles Today,
Fall River, Mass. – Quaker Fabric has amended its five year, senior secured credit facility and has hired a financial consulting firm, getting its financial house in order to the satisfaction of its lenders.
“I am pleased to report that we have reached agreement with our lenders on a waiver of those specified defaults [events precipitated by a recent audit] and certain other changes to our loan documents. With this waiver and amendment in place, we are no longer in default under the terms of our loan documents. We believe that this waiver and amendment provides the time and financing for the company to continue its restructuring initiatives," said Larry Liebenow, Quaker president and ceo.
The restructuring includes an agreement reached earlier this month to sell its 240,000-sq.-ft Plant D manufacturing facility to Strictly Realty for $1.4 million, and the sourcing partnerships its recently forged with Daewoo International (Korea) and Hangzhou Zhongwang (China).
Quaker Fabric continues to operate normally, and plans to file its 2005 form 10-K by March 31.
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