Atrium receives bank waiver, starts solicitation for 11½% notes

New York, Aug. 4 - Atrium Cos., Inc. said it received a waiver from the majority of the lenders under its credit facility and the lender for its accounts receivable securitization facility. The company also said its parent, ACIH, Inc., has started a consent solicitation for a waiver and amendment for its 11½% senior discount notes due 2012.

All the defaults are related to the company's failure to deliver 2004 audited financial statements and first-quarter unaudited financial statements on time.

As previously announced, ACIH has received a notice of default from the trustee for the 11½% notes.

The bank waiver, effective July 28, runs through Oct. 28 for the credit facility and Sept. 16 for the accounts receivable facility.

For the solicitation of noteholders, ACIH has already obtained an agreement in principle from holders of a majority of the notes to consent to the proposed waiver and amendment.

ACIH is asking investors to waive its obligation to provide the 2004 and first- and second-quarter financial statements up to Nov. 12.

The consent solicitation runs through 5 p.m. ET on Aug. 11.

Holders who consent will receive a fee of 1% of the accreted value of the notes.

Atrium is a Dallas-based manufacturer of aluminum and vinyl residential windows.

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