Advanced Glassfiber Yarns obtains forbearance extension, to miss coupon

By Sara Rosenberg

New York, Aug. 14 - Advanced Glassfiber Yarns LLC entered into a new amendment and forbearance agreement with its lenders, under which the previous forbearance period, which expired Aug. 13, was extended until Sept. 27 while discussions on restructuring continue.

In addition, the Aiken, S.C. supplier of glass yarns, will not be making the $7.4 million interest payment on its $150 million 9 7/8% senior subordinated notes that is due upon the expiration of a 30-day grace period.

"The Company stated that, although the grace period has expired, it has commenced discussions with a steering committee of the holders of the notes, and intends to continue its efforts to achieve a consensual restructuring of such indebtedness," the release said.

The company has a $315 million credit facility, consisting of a term loan and a revolver, according to a company press release. Previously, the company announced that it was in negotiations with lenders regarding a consensual restructuring of about $180 million in outstanding debt under the facility.

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