surged 18% Thursday after the struggling consumer goods company made an interest payment and reached a truce with some creditors.
The Lake Forest, Ill., seller of George Foreman grills said it made June's interest payment on its 10.75% senior subordinated notes due in December. The payment came within a 30-day grace period, Salton said. The company was blasted by a noteholder group last month after it failed to make a $6.7 million interest payment and proposed a debt swap.
On Thursday, Salton said 62% of holders of the 2005 notes had agreed to participate in the exchange offer, along with holders of some $51 million of its 2008 notes.
The news came as the company struggles with high costs and soft sales. Salton lost $23 million in its third quarter ended April 2, and the company earlier this month got a letter from the
New York Stock Exchange
warning that it could be delisted from the exchange because of its small market capitalization. Salton shares have lost more than 75% of their value over the last year.
On Thursday, Salton added 20 cents to $1.30.