Atrium Looking to Restructure
Atrium Cos. Inc. has entered into a forbearance agreement with its principal lenders that will provide the window and door manufacturer with additional time to restructure its capital structure, according to a May 15 press release.
During the forbearance period, Atrium will operate normally, officials note. It will continue to provide products and services to its customers in a timely manner and will continue to pay suppliers under customary terms.
During this time, Atrium will work constructively with its creditor constituencies on a restructuring plan that will provide Atrium with additional operating capital and flexibility, the company reports.
Based on the forbearance agreement, Atrium did not make certain interest payments due on May 11, 2009 under its credit agreement with certain lenders and GE Business Financial Services Inc., as administrative agent. The company also reached a forbearance agreement under its accounts receivable financing with General Electric Capital Corp., which has agreed to continue purchasing receivables during the forbearance period, it is reported.
Under these agreements, Atrium's lenders have agreed to refrain from exercising their default-related rights and remedies during the forbearance period.