UniTek standstill periods extended; term loan interest payment made

By Caroline Salls

Pittsburgh, June 13 - UniTek Global Services, Inc. entered into amendments to forbearance agreements with the lenders under its term and revolving credit agreements, further extending the termination of standstill periods through June 30, according to a news release.

In connection with the extensions, the company said it paid in full the interest payment due May 29 on the term credit agreement.

UniTek said it will continue to explore refinancing alternatives during the forbearance period with the assistance of Miller Buckfire & Co.

"I have great confidence in the ability of our team and our outside advisers to help us complete this process so that we can focus on the execution of our growth strategy," UniTek chief executive officer Rocky Romanella said in the release.

The company also said it is still working to complete its financial statements for 2012 and the restated financial information for previous periods.

In addition to the financial statements the company previously announced it would be restating, UniTek said it will also be restating its financial information for the second fiscal quarter ended July 2, 2011 in connection with revenue recognition issues.

Estimates revised

According to the release, the company revised the preliminary estimates for its 2012 revenue, adjusted EBITDA and net loss to $437 million to $441 million $38 million to $41 million and $49 million to $55.6 million, respectively.

UniTek said the changes in revenue and adjusted EBITDA estimates principally result from the efforts of its financial and accounting staff to prepare the restated financial statements, including its assessment of Pinnacle Wireless division contracts.

The company said it expects to recognize a portion of the revenue and adjusted EBITDA related to these contracts in 2013 and subsequent periods.

The preliminary estimate of net loss for 2012 excludes potential charges that may result from a review of the carrying value of the goodwill, identified intangible assets and contingent consideration recorded in connection with the 2011 acquisition of the assets of Pinnacle Wireless, Inc. and Current Flow Technologies Corp., the release said.

As a result of these adjustments to revenue and adjusted EBITDA, UniTek said it is in the process of reviewing the carrying value of the goodwill, identified intangible assets and contingent consideration recorded in the engineering and construction segment, which includes the business acquired in the 2011 Pinnacle acquisition to determine if any charges are appropriate.

The company said it continues to consider its rights and remedies related to payments previously made under the March 30, 2011 Pinnacle Wireless and Current Flow Technologies asset purchase agreement.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.