Fedders Reaches Agreement Related to Delayed Filings
Sep 1, 2005
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HVAC manufacturer Fedders Corporation announced it has reached an agreement in principle with holders representing more than a majority in principal amount of Fedders North America's U.S. $155 million principal amount of 9-7/8 percent senior notes due 2014 on a waiver of the existing event of default under the senior notes.
The default results from the company's failure to timely file its Form 10-K for the year ended Dec. 31, 2004 and other defaults resulting from failure to timely file its subsequent quarterly reports.
Fedders said it also reached agreement in principle with its senior lender with respect to the waiver under the senior notes and a waiver of the default under its agreement with the senior lender, also related to the failure to timely file the Form 10-K and subsequent quarterly reports.
Fedders will not make the Sept. 1, 2005 interest payment due on its senior notes until final documentation concerning the waiver is completed with the holders of the senior notes. Fedders said it intends to make the interest payment following receipt of the requisite waiver.
In connection with reaching the agreement, the company's board of directors did not declare quarterly dividends on the Company's Series A Cumulative Preferred Stock, Common Stock or Class B Stock, which would be paid on Sept. 1, 2005.
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