Rowe modifies GE credit pact
By Furniture Today Staff -- Furniture Today, February 20, 2006
McLean, Va. — With its chairman and a director putting up personal guaranties, The Rowe Companies said it has modified its credit agreement with GE Commercial Finance to eliminate a requirement the company raise additional equity.
Rowe, the parent of upholstery manufacturer Rowe Furniture and Atlanta-based retailer Storehouse, said the change also raises the company's borrowing availability by $3 million.
In connection with the change, company Chairman and President Gerald Birnbach and Sidney Silver, a company director, provided limited guaranties of up to $1.5 million each.
"The increase in the borrowing availability and the elimination of a fixed timetable for raising equity affords the company additional time for implementing its performance improvement plan and exploring growth capital alternatives," said Birnbach.
"We are very appreciative of GE's willingness to work with the company in this fashion," he said.
