Anvil Holdings may miss September interest payment on 10 7/8% notes

By Caroline Salls

Pittsburgh, April 28 - Anvil Holdings, Inc. warned that it will most likely not be able to repay the principal on its $130 million of 10 7/8% senior notes due March 15, 2007 and may not be able to make the Sept. 15 interest payment on the notes, according to a 10-K filing with the Securities and Exchange Commission.

According to the filing, failure to make the interest payment could create a default under the notes or the company's revolving credit facility. The risk of non-payment raises substantial doubt about Anvil's ability to continue as a going concern.

The company said it does expect to be able to pay its interest obligations under its revolving credit facility and that there will be sufficient availability under the revolver to fund normal working capital requirements through the loan's Jan. 11, 2007 expiration.

Anvil said it hired Jefferies & Co., Inc. as its financial adviser and is exploring strategic alternatives in connection with its capital structure.

Unless the senior notes are restructured or refinanced before the revolver's expiration date, the company said it may not be able to renew the loan.

Anvil is the New York-based parent of Anvil Knitwear Inc.

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