Tom's Foods negotiating to extend forbearance beyond Oct. 29

By Jeff Pines

Washington, Oct. 22 - Tom's Foods Inc. reported it is holding discussions with the holders of its 10½% senior secured notes and Fleet Capital Corp. to extend the forbearance beyond Oct. 29 when the credit facility matures.

In a Friday filing with the Securities and Exchange Commission, Tom's Foods said it is looking for new financing so it can pay off the notes and its credit facility, which is through Fleet.

Without a forbearance, the company will be in default on the credit facility on Oct. 30 and on the notes on Nov. 2.

Columbus, Ga.-based Tom's Foods has $60 million of the notes outstanding and $3.15 million of interest due on Nov. 1. The principal on the credit facility is $9.2 million.

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