Trailer maker Wabash National and its bank group have entered into a forbearance agreement on a revolving line of credit, with the bank group agreeing to refrain from accelerating maturity on the line of credit through May 29. A $22.5 million reserve was established -- adjusted downward from the $25 million reserve previously announced.
Wabash’s liquidity -- cash plus available borrowings -- was approximately $13 million, as of last Thursday, according to the Lafayette Journal and Courier.
"Completing the forbearance agreement is an important step in the continuing process of working with our bank group to reach a satisfactory resolution as it relates to our near-term capital requirements," said Dick Giromini, Wabash National president & CEO. "We intend to use this time to continue to negotiate an appropriate capital structure that will support our near-term liquidity requirements and long-term strategic plans."
Facing an uncertain future, Wabash has cut 180 salaried employees. It also has implemented a 10% pay cut for remaining salaried workers and executives, and has approximately 800 production workers on layoff status.
BB&T Capital Markets has been retained as the company's exclusive financial advisor.