Salton to seek claims against APN after merger termination; amends senior credit facility

By Lisa Kerner

Charlotte, N.C., Aug. 1 - Salton, Inc. is working to improve its financial position while considering actions against APN Holding Co., Inc.

APN terminated its merger agreement with Salton after the companies failed to close the deal by the July 31 deadline. Salton called the termination wrongful and said it shows APN has not acted in good faith.

As a result, Salton intends to "vigorously pursue its claims and remedies against APN Holdco, its affiliates and representatives."

"While we are disappointed with APN Holdco's actions, our management and board is actively pursuing a number of operational and strategic options to improve our liquidity position and our financial performance," Salton chief executive officer William Lutz said in a company news release.

The Lake Forest, Ill., small appliance company entered into an interim amendment to its senior credit facility, extending the repayment date on all outstanding overadvances to Aug. 6.

As previously reported, APN and Salton entered into a definitive merger agreement on Feb. 7. Either company could terminate the agreement if the merger had not been consummated by July 31.

Salton's wholly owned subsidiary SFP Merger Sub, Inc. was to merge with and into APN Holding, which acquired all of the outstanding common shares of Applica Inc. in January. Applica, located in Miramar, Fla., along with its subsidiaries, markets branded and private-label small household appliances.

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