Liberty Corner, N.J. — Air conditioner maker Fedders has reached an agreement in principle with note holders and its senior lender to waive defaults related to the company’s delayed financial filings.
The note holders represent more than a majority of Fedders North America’s $155 million principal amount of 9 7/8 percent senior notes due in 2014.
The waiver deals with an existing default stemming from Fedders failure to timely file its 10-K for the year ended Dec. 31, 2004, announced in June, and for other defaults resulting from failure to timely file subsequent quarterly reports.
Fedders also has reached agreement in principle with its senior lender with respect to the waiver under the senior notes, and a waiver of the default under its agreement with the senior lender, also related to filing failures.
Both agreements are subject to completion of final documentation, and there can be no assurance that Fedders will reach a final agreement with the holders of the senior notes and the company’s senior lender, according to the company.
Fedders said it did not make a Sept. 1 deadline for an interest payment due on its senior notes, instead waiting until final documentation concerning the waiver is completed with the holders of the senior notes. The company said it intends to make the interest payment promptly following receipt of the requisite waiver.