Matrix gets waiver of non-compliance, amends revolver

By Sara Rosenberg

New York, April 11 - Matrix Service Co. got a waiver from senior lenders through June 15 regarding any current violation under its credit facility, and, in connection with the waiver, the company amended its credit facility to increase revolver availability to the lesser of $32 million or 75% of the borrowing base, according to a company news release

Upon the funding of a proposed private placement of convertible subordinated junior securities, the amendment also would allow the revolver to increase to the lesser of $35 million or 80% of the borrowing base. The bank group has indicated that they would provide an incremental $10 million of short-term financing to provide additional liquidity, primarily for trade creditors.

"Based upon the current status of the senior credit facility, total liquidity has been constrained due to shortfalls in operating performance," president and chief executive officer Mike Hall said in the release.

"We believe that the solution to these constraints will be solved by improvement in overall operating performance based upon the restructuring efforts currently underway, by the collection of the disputed contracts and by the raising of additional capital through debt restructuring efforts.

"The company has engaged a financial consultant to assist senior management with all restructuring activities."

The waiver was obtained Friday.

Matrix is a Tulsa, Okla.-based provider of general industrial construction and repair and maintenance services principally to the petroleum, petrochemical, power, bulk storage terminal, pipeline and industrial gas industries.

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