Unique Fabricating warns that it may not continue as a going concern

Chicago, April 20 – Unique Fabricating, Inc. warned, as it was reporting fourth quarter financial results, that it may not be able to continue as a going concern, according to a press release.

The company entered into a forbearance agreement with its lenders that covers the period between April 9 and June 15. During that time, the company may be able to borrow from its revolver and the lenders have agreed to not enforce their rights or seek to collect payment of the company’s debt or dispose of the collateral securing the debt.

The company intends to use the time to continue negotiations with the lenders to enter into an amendment and waiver to cure the defaults.

The company is currently not in compliance with certain covenants of its amended and restated credit agreement and does not have sufficient liquidity to repay the debt, which is now due.

Net debt had increased to $49.7 million as of Dec. 31, 2020.

The Auburn Hills, Mich., company makes foam, rubber and plastic components.

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