Bondholders of Salton Inc., maker of the George Foreman indoor grill, agreed to a debt reorganization that will allow the Lake Forest, IL, U.S.-based company to pay its debts.
Salton got holders of U.S. $77.8 million, or 62 percent, of its bonds maturing this year to exchange their holdings for debt maturing in 2008, company spokesman Michael Wachs said. Salton also made its June interest payment on the notes within the 30-day grace period, according to Mr. Wachs. It had missed the payment when it was due on June 15.
The small appliance maker has reported losses in four of the last five quarters and has more than $400 million in debt. It had $18.2 million in cash in April and about $7.8 million from a bank credit line, according to a regulatory filing.
The company needed to get holders of at least $75 million of the notes to agree to the reorganization plan. The holders of approximately $50.9 million of notes maturing in 2008 have also entered into support agreements, Mr. Wachs said.
A group of Salton bondholders represented by Chanin Capital Partners in Los Angeles, CA, U.S. had opposed the plan. (Bloomberg News)
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