Cinram Talking With Lenders Over Amendments2 Aug, 2011 By: Chris Tribbey
Replicator Cinram announced Aug. 2 it was in talks with its lenders on amending its senior secured credit agreements, warning that it could default if changes to terms weren’t reached.
Pointing to “adverse conditions” in the home entertainment industry, the company said in a statement that its second-quarter revenue and earnings have been negatively impacted by current credit requirements.
“Although discussions are under way and are at an advanced stage there can be no assurance that the proposed amendments will be approved,” the company said in a statement.
In April Cinram completed a refinancing and recapitalization plan, with current lenders agreeing to extend the replicator’s credit line through 2013. The plan had the company reducing its existing term debt from $367 million by $120 million.