Samsonite obtains extension on credit agreement

Chicago, May 29 - Samsonite Corp. said the amendment to extend its senior credit facility became effective Thursday after the company reached an agreement in principle with the Pension Benefit Guarantee Corp. The amendment extends the maturity date of the facility's revolving credit and European term loans to June 24, 2004 from June 24, 2003.

The luggage manufacturer said in a news release the amendment will enable it to meet its short-term working capital requirements and eliminates uncertainty about its ability to continue as a going concern, discussed in the company's Jan. 31, 2003 financial statements.

The resolution of the Pension Benefit agreement is a condition to completion of Denver-based Samsonite's recapitalization transaction, which, after the amendment, the company expects to complete in the third calendar quarter of 2003.

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