Standstill Agreement
01 Mars 2010 - 9:22AM
UK Regulatory
TIDMFCOM
RNS Number : 8263H
First Communications, Inc.
01 March 2010
First Communications, Inc.
Standstill Agreement on Credit Facility
Akron, OH, March 1, 2010 - First Communications, Inc. today provides the
following update on the successful Standstill Agreement that has been put in
place with its lender group on its credit facility.
Standstill Agreement
On August 21, 2009 the Company announced an amendment to its existing credit
facility (the "Amendment") with a bank group lead by JPMorgan Chase Bank, N.A.
(the "Lender Group") which amended certain financial and other covenants of the
Company. Under the Amendment, the Company was required to raise at least $10
million of equity by January 31, 2010. The credit facility has a 30 day cure
period ending February 28, 2010 if such equity was not raised by such date. The
Company has not raised such equity in the period.
On February 26, 2010 the Company and the Lender Group entered into a Standstill
Agreement which provides that the Lender Group may not exercise any of the
remedies available under the credit facility with respect to the failure to
raise such equity for a period ending no earlier than March 31, 2010. Subject to
agreement with the Lender Group, the standstill period can be extended to no
later than June 30, 2010. The Company remains in compliance with all other
covenants, including all the amended financial covenants contained in the
Amendment as outlined in the August 21, 2009 announcement. The Company expects
to meet its next financial covenant test due March 31, 2010.
The Company's operating results continue to meet management's expectations and
it expects to be able to announce its full year financials sometime over the
next 2 months. The Company continues to pursue its strategic options in order to
address its debt balance, which currently will mature on December 7, 2010 and
will provide an update once it is in a position to do so.
For Further Information:
First Communications, Inc.
Joe Morris Tel: +1 (330) 835-2472
Collins Stewart Europe Limited
Stewart Wallace Tel: +44 (207) 523-8350
This information is provided by RNS
The company news service from the London Stock Exchange
END
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