WRC Media receives waiver through March 31

New York, Jan .7 - WRC Media Inc. said it received a waiver from the lenders under its credit agreement of expected non-compliance with financial covenants as of Dec. 31.

The waiver runs to March 31, the New York-based educational publisher said in a filing with the Securities and Exchange Commission.

Under the waiver, WRC will be able to borrow an additional $13 million under its revolving credit facility on top of the $13 million of existing revolver loans and letters of credit.

Based on its current forecast, WRC said it believes the additional borrowings in addition to its cash will be sufficient to pay current obligations through April.

After that the company will have a shortfall unless it amends or refinances its credit facility.

WRC added that it is in discussion with its lenders about amending the current facility and possibly refinancing part of it.

WRC also noted that it does not expect to be in compliance with covenants as of March 31.

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