NexCen explores sales of Waverly, Blass brands
Gary Evans -- Furniture Today, June 20, 2008
The company, which manages brands as well as franchise operations in the retail and fast food sectors, has also forged an agreement with lender BTMU Capital Corporation that gives it access to cash from its lockbox account, according to a filing with the Securities and Exchange Commission.
The lockbox account arrangement had choked off NexCen’s liquidity, causing the company to seek out strategic alternatives with assistance from investment bank N M Rothschild & Sons. NexCen said it is working with BTMU to restructure its borrowing facility, particularly an accelerated principal payment requirement scheduled for October.
“The company has received numerous expressions of interest in both the Bill Blass and Waverly brands from domestic and international strategic and financial buyers and is working with Rothschild to evaluate the possibilities,” the filing stated.
The recent agreement with BTMU provides NexCen with forbearance from certain defaults under its borrowing facility. The agreement extends through July 17, although it terminates earlier if new faults occur, according to the filing.
“Securing a long-term solution to the company’s liquidity requirements remains one of management’s top priorities and this agreement is an important step in enabling us to continue to implement our operating planes for both our license and franchise businesses,” said Robert D’Loren, NexCen ceo.
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