Unique Fabricating amends forbearance agreement for third time

Chicago, Dec. 9 – Unique Fabricating, Inc. has amended its forbearance agreement for its credit agreement that lists Citizens Bank, NA as administrative agent on Dec. 9, according to an 8-K filing with the Securities and Exchange Commission.

Certain covenants have been suspended until Feb. 28, 2022.

Specifically, the lenders in the third agreement have agreed to forbear with respect to the minimum consolidated EBITDA covenant violation and to suspend the minimum consolidated EBITDA covenant through the remainder of the forbearance period.

There is a new covenant, though.

Starting Dec. 15, weekly testing requires that the company’s actual cumulative total cash disbursements for the period being tested do not exceed total cash disbursements projected by the company for the same period by more than 15% at any time during the forbearance period.

The maximum amount that can be borrowed under the revolving line of credit has been reduced to $25 million from $27 million. At no time in 2021 has the amount of borrowings under the revolving line of credit been more than $19 million. On Tuesday, it was at $17.4 million.

The company intends to use the forbearance period to continue negotiations with the lenders to enter into an amendment and waiver to cure the defaults. There can be no assurance that the company will be able to enter into an amendment or waiver with the lenders or if it enters into an amendment, what the terms, restrictions and covenants of the amendment will contain.

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

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