Atrium Finalizes Debt Restructuring
Atrium Cos. Inc., reports it has restructured its debt with each of its major creditor groups. With a capital infusion to reduce overall debt, the actions improve Atrium’s liquidity and will enable management to effectively guide operations through the slowing economy, the company reports.
As part of the restructuring, each of Atrium’s creditor groups has agreed to eliminate all financial
covenants for the first year and impose only a minimum EBITDA (earnings before interest, taxes, depreciation and amortization) covenant in the following years. These relaxed lender
requirements support Atrium’s efforts to work through the housing industry’s present challenge.
“In sum, this restructuring infuses new capital, reduces the company’s overall debt, and improves Atrium’s liquidity,” says Greg Faherty, Atrium’s president and CEO. “While we anticipate difficult markets throughout 2009, this restructuring will allow us to effectively manage the business through the current downturn and be ready to grow when the markets turn around.”