Xerium Technologies, Inc. (NYSE: XRM), a leading global manufacturer of industrial textiles and rolls used primarily in the paper production process, yesterday announced that it has secured from certain of its lenders an extension of its existing temporary loan covenant waivers until March 1, 2010. The lenders have extended the existing loan covenant waivers in order to facilitate continued negotiations for a comprehensive recapitalization of the Company.
Pursuant to the extension, certain lenders have agreed to extend the previous waivers of any defaults resulting from the Company’s failure to comply with certain financial covenants under its credit agreement for the quarters ended September 30, 2009 and December 31, 2009, and to waive any defaults under agreements creating the Company’s existing hedging obligations and to extend the forbearance thereof.
“We appreciate the support and commitment of our lenders as we work within the prescribed framework to finalize an agreement,” commented Stephen R. Light, Xerium’s Chairman, CEO and President. “We are eager to put this debt restructuring behind us as we continue to move forward as a more competitive and operationally efficient organization.”
“We continue to caution you that there can be no assurance that we will complete these negotiations in the time frame specified and no assurance that the required one hundred percent of lenders will vote in favor of any transaction substantially consistent with the framework in order to implement the recapitalization without court assistance.”
About Xerium Technologies
Xerium Technologies, Inc. (NYSE: XRM) is a leading global manufacturer and supplier of two types of consumable products used primarily in the production of paper: clothing and roll covers. The Company, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 32 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,300 employees.