ACT Manufacturing considering bankruptcy filing

New York, Dec. 19 - ACT Manufacturing, Inc. said it is considering options including a possible filing for protection under bankruptcy laws after its bank lenders did not agree to extend waivers on its credit agreement.

The Hudson, Mass. electronics manufacturing company had been operating under a third waiver to its bank facility but that waiver expired on Dec. 14, putting the company in default.

"The domestic bank syndicate has not agreed to any additional or extended waivers under the credit agreement, and the company has fully utilized the available liquidity under the credit agreement," ACT said in a filing with the Securities and Exchange Commission. The bank facility is with a syndicate led by Chase Manhattan Bank.

ACT said its North American operations have "very limited liquidity."

In addition to a possible bankruptcy filing, ACT said it is also considering additional layoffs at several locations.

End

© 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.