, an industrial coatings and chemicals producer, said it received a default notice from the trustee of certain of its notes and debentures with an aggregate principal amount of $355 million.
The company said last week it has received a 90-day waiver on its asset securitization program.
The Cleveland-based company has been in default on its reporting requirements since it delayed filing its Form 10-Q for the second quarter of 2004 due to the restatement of its 2003 and first quarter 2004 results.
On March 30, the company had negotiated commitments on a new credit facility from National City Bank and Credit Suisse for up to $700 million. The commitment includes $400 million in term loans structured to be available to the company if repayment of outstanding notes and debentures is accelerated by actions taken by current bondholders. The remaining $300 million of the facility will replace the company's current revolving credit facility.
"We fully anticipated the possibility of receiving default notices," the company said. "When the new credit facility is in place, which we anticipate will happen within the next 90 days, we will be able to cure the defaults or have sufficient funds to pay bondholders who request acceleration. We continue to believe we will have arrangements in place to meet all the liquidity needs of our operations and the financial flexibility we need to build a stronger, more profitable Ferro."
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