Stanley Furniture gets relaxed covenants from noteholder, must keep $5 million cash on hand

By Lisa Kerner

Charlotte, N.C., Aug. 6 - Stanley Furniture Co., Inc. entered into an amendment to its note purchase and private shelf agreement with Prudential Insurance Co. of America on Aug. 2, according to a form 8-K filed with the Securities and Exchange Commission.

The amendment relaxes financial covenants that apply through the second quarter of 2011.

In addition, the amendment requires that Stanley Furniture's loss before interest, tax expense, depreciation and amortization not exceed $10 million for the cumulative four quarters ending with the second quarter of 2011.

Stanley Furniture, a Stanleytown, Va., furniture company, also agreed to maintain unrestricted cash on hand of at least $5 million at all times through the second quarter of 2011.

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