UniTek Global Services term and revolver lenders agree to forbearances

By Caroline Salls

Pittsburgh, May 3 - UniTek Global Services, Inc. entered into forbearance agreements with the lenders under its term credit agreement and revolving credit agreement, according to an 8-K filed Friday with the Securities and Exchange Commission.

FBR Capital Markets LT, Inc. is the documentation agent, syndication agent and administrative agent on the term agreement, and PNC Bank, NA is the revolver agent.

The standstill period under the term forbearance will terminate on the earlier of May 30 and the delivery of the company's audited financial statements for fiscal year 2012 to UniTek by its auditors or on the date on which an uncovered default occurs, the date of an amendment or restructuring of any loan documents, the date any loan party challenges the validity or enforceability of the loan or forbearance and the launch of any enforcement and collection actions.

UniTek will pay a forbearance fee of 0.50% of the principal amount of the outstanding terms loans.

Meanwhile, the standstill period under the revolver will terminate on the earlier of May 30 or the date on which an uncovered default occurs, the date of an amendment or restructuring of any loan documents and the date any loan party challenges the validity or enforceability of the loan or forbearance.

The company will pay a $50,000 fee under the revolver forbearance.

As previously reported, the company announced that its previously issued consolidated financial statements dating back to the interim period ended Oct. 1, 2011 should no longer be relied upon as a result of revenue recognition issues at its Pinnacle Wireless division.

UniTek is a Blue Bell, Pa.-based provider of engineering, construction management and installation fulfillment services to the telecommunications, broadband cable and satellite industries.

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