Debt Amendments Provide Relief for The Newark Group
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The Newark Group, Cranford, N.J., USA, has completed an agreement with its term loan and asset-based lenders to provide relief to the company via amendments to its major credit facilities. The lenders have agreed to:
- Suspend mandatory debt amortization payments for the next year
- Suspend testing of existing financial maintenance covenants to allow the company to execute its restructuring plans
- Allow the company to obtain an additional $20 million in the form of supplemental loans under its existing term loan facility
- Waive all April 2011 and July 2011 defaults under the credit facilities.
"We are pleased that our lenders have the confidence in the company to assist it in achieving the results contemplated in our recently announced restructuring plans," said Frank A. Papa, president and CEO of The Newark Group.
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