Small appliance maker Salton, Inc. announced that the company will not make the interest payment of approximately U.S $6.7 million due on June 15, 2005 under its outstanding 10.75 percent senior subordinated notes.
The notes provide a 30-day grace period to pay the interest, but Salton said that it believes it is prudent to use the time while the company pursues options to refinance the 10.75 percent senior subordinated notes due Dec. 15, 2005.
Salton said that there is no assurance that it will make the interest payment during the grace period.
In addition, the company said that it will pursue strategic options to raise funds required to satisfy the $125 million of outstanding 10.75 percent senior subordinated notes.
Salton said the options may include incurring additional debt, issuing debt or equity securities, sales of assets or businesses, reducing expenditures for new product development and/or cutting other costs, repurchasing outstanding debt securities, exchange offers and/or consent solicitations of outstanding securities.
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