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BMC has until July 15 to repay all bank debt; hires Chanin Capital as adviser
By Sara Rosenberg
New York, May 20 - BMC Industries Inc. said it got an additional waiver of non-compliance with covenants and obligations under its credit facility that was due May 14 giving the company until July 15 to repay the outstanding $120.6 million bank debt balance.
Furthermore, the company said it retained Chanin Capital Partners LLC to advise on strategic alternatives, including a sale of all or portions of BMC.
Under the new waiver, the company also received an extension of the time to make scheduled principal and fee payments, and interest payment obligations of about $1.5 million were deferred until the termination date of this waiver, according to a company news release.
As in previous waivers, the banks and the company have agreed that no additional borrowings will be extended during the waiver period.
The company has been operating under a series of waivers from its banks since June 30, 2003.
There have been ongoing discussions between the company, its advisers and the bank group regarding an additional waiver or other resolution.
"If the bank group does not grant a further extension and waiver on July 15, 2004 or sooner in an event of default under the current waiver or credit agreement, the company will need to either (i) repay the debt owed to the banks, with financing from a new lender and/or proceeds from a sale of the company, or (ii) file for protection under the U.S. bankruptcy code," the release concluded.
BMC is a Minneapolis designer, manufacturer and distributor of polycarbonate and glass eyewear lenses.
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