Quaker avoids loan default, sheds 2 VPs
By Furniture Today Staff -- Furniture Today, April 2, 2006
Fall River, Mass. — Upholstery fabric supplier Quaker Fabric has hired a financial consultant and reached an agreement with lenders to avoid defaulting on loans.
The company said it continues to operate normally.
Meanwhile, Mark Hellwig, vice president of supply chain management, and Norman Sturdevant, vice president and chief information officer, have left the company.
James Dulude, vice president of manufacturing, and Duncan Whitehead, vice president of research and development, have assumed Hellwig's responsibilities. Paul Kelly, vice president of finance and chief financial officer, has assumed Sturdevant's duties, Quaker said.
Earlier, Quaker requested more time to file its annual 10-K report with the U.S. Securities and Exchange Commission, and said its accountant was likely to express "a substantial doubt as to the company's ability to continue as a going concern."
President and CEO Larry Liebenow said the delay in filing was needed so Quaker could work with lenders on the terms of its senior secured credit facility.
"I am pleased to report that we have reached agreement with our lenders on a waiver of specified defaults and certain other changes to our loan documents," he said. "With this waiver and amendment in place, we are no longer in default under the terms of our loan documents. We believe that this waiver and amendment provides the time and financing for the company to continue its restructuring initiatives."
Quaker, with about $225 million in annual volume, expects to report a net loss of about $26.3 million for fiscal 2005, compared with a net loss of $2 million the year before. It has sold a vacant plant here for $1.4 million and signed partnership agreements with fabric sources in China and Korea.
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Quaker Fabric avoids default on loans; two VPs leave
Mar 24, 2006
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