International Textile gets waiver from 18% noteholders

By Angela McDaniels

Tacoma, Wash., Dec. 31 - International Textile Group, Inc. and the holders of its $80 million 18% senior subordinated notes due June 6, 2011 amended their note purchase agreement on Dec. 24, waiving the company's non-compliance with an international greenfield debt limitation.

The amendment also modified the international greenfield debt limitation to provide for a total basket of $165 million and added an excess U.S. collateral coverage ratio, according to an 8-K filing with the Securities and Exchange Commission.

Following the amendment, the company is in compliance with the debt limitation and the new ratio and said it expects to remain so for the foreseeable future.

The amendment also provides for, among other things, the guaranty by some of the company's U.S. subsidiaries for the notes, liens on substantially all of its U.S. assets and a pledge of the stock of some U.S. and foreign subsidiaries.

The liens and pledges are subordinated to the senior liens of the company's credit facility lenders, the filing noted.

The notes were placed with some entities affiliated with Canyon Capital Advisors LLC and Clearlake Capital Partners LLC in June 2007.

International Textile is a Greensboro, N.C.-based manufacturer of textiles.

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