This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Champion Industries Defaults on Debt

Stocks in this article: CHMP

Because of the default, Champion Industries could be facing an accelerated maturity of some $36 million in remaining outstanding debt.

The company warned that it could default on its debt by the end of March "due to the short-term nature of the credit expiration and the multitude of covenants we are required to comply with," Champion said in a March 15 statement.

"We intend to work with our secured creditors and advisers to address our debt maturities and liquidity to the best of our ability and if successful in stabilizing our funding platform going forward, we believe our core business has the opportunity to improve," Champion Industries chairman and CEO Marshall T. Reynolds said in the March 15 statement.

Champion Industries also warned that it will likely miss its $2.1 million payment due on its bullet loan A due on March 31. The bullet loan A is priced at Libor plus 800 basis points. Champion Industries had a $3.54 million net loss for the first quarter of 2013 and a $22.9 million net loss for the entire year in 2012.

The company incurred its original $85 million in debt during its acquisition of the Herald-Dispatch, which has a daily and Sunday circulation of 24,000 and 30,000, respectively. But Champion Industries has been acquisitive in other industries, too, having acquired 15 printing companies, eight office products and office furniture companies, one company with a combined emphasis on both printing and office products and office furniture and a paper distribution division (which was subsequently sold in 2001) since its initial public offering on Jan. 28, 1993.

Champion Industries listed its assets at $43.8 million and its liabilities at $48.73 million as of Jan. 31 in SEC documents.

The company's chief financial officer, Todd R. Fry, couldn't be reached for comment. A spokesman for Fifth Third Bank refused to comment.

Champion Industries' counsel, Thomas J. Murray at Huddleston Bolen LLP, refused to comment.

Written by Jamie Mason in New York

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,319.71 +128.34 0.75%
S&P 500 2,012.10 +9.94 0.50%
NASDAQ 4,654.2210 +16.2270 0.35%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs