lenders gave the company two more months to file third-quarter numbers, but they tightened their control over the company's borrowing in the meantime.
The Winston-Salem, N.C., doughnut maker said Tuesday it will have until March 25 to file financials without triggering a default on its debt. The extension comes as a previous 10-day waiver expired.
The news means a brief respite for hard-hit investors in the one-time Wall Street favorite. Krispy Kreme lost 66% in 2004, beaten down by word of a
Securities and Exchange Commission
probe and a profit warning that lopped about 30% off the stock on a single day last May.
If anything, this year has gotten even worse, with the company saying Jan. 4 that it would have to restate earnings downward and then parting ways with longtime CEO Scott Livengood last week. Krispy Kreme hired former Enron chief and turnaround specialist Stephen Cooper to replace Livengood.
On Tuesday, the lenders gave the company some space, but they took their pound of sugar-glazed flesh as well. Krispy Kreme said that to get a waiver on the defaults, it agreed to amend its credit facility to restrict borrowing without lender consent.
Early Tuesday, Krispy Kreme rose 33 cents to $9.08.