NCI Gets Full Support from Lenders On Restructuring
Still seeks approval from bondholders.
Network Communications Inc. has reached an agreement with 100 percent of its revolving loan lenders and 100 percent of its term loan lenders on a balance sheet restructuring that will cut debt from $300 million to $115 million. The company says it has support from approximately 89 percent of its bondholders and will continue to seek additional support for the restructuring in the coming weeks.
"Obtaining the support of our creditors on the terms of our balance sheet restructuring is a huge step forward for the company," said CEO Dan McCarthy in a statement. "We look forward to implementing the restructuring over the course of the next several weeks and providing the company with a de-leveraged balance sheet to provide us with the operating flexibility to take advantage of improving market conditions."
In June, NCI defaulted on its interest payment on its 10-3/4 senior notes due 2013, which prompted the restructuring negotiations. According to the company’s most recent financial statement filed with the SEC, NCI reported a net loss of $10.5 million through its fiscal third quarter (period ended December 6), compared to a loss of $83.4 during the same period the prior year. Revenues were $105.1 million, a decline of 24.2 percent.