Falcon Products fails to comply with loan covenants, plans refinancing

New York, Sept. 16 - Falcon Products Inc. said it failed to comply with the covenants in its credit agreement as of July 31.

The St. Louis maker of commercial furniture said it is "exploring various alternatives" and, based on discussions with potential lenders, expects to be able to refinance its senior credit facility on terms that will allow it to complete its planned operating improvements and position itself to return to profitability.

For the third quarter, Falcon reported a loss of $5.1 million before restructuring and other one-time charges totaling $15.4 million. Sales were $58.4 million, down from $62.3 million for the same quarter a year earlier.

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