Acterna says it had cash to make bank debt payments but chose not to

By Carlise Newman

Chicago, April 9 - Acterna Corp. said it had enough cash to make the interest payments on its senior debt on March 31 but chose to withhold the payment because it is in talks with its lenders on restructuring the bank debt.

On April 7, Acterna said it did not make the payments within the five-day grace period, putting it in default. The company also said if lenders demanded repayment, it would be unable to make the payments.

But a spokesperson for the company told Prospect News Wednesday Acterna had cash on hand to make the payments on March 31.

"Our decision was made in connection with the restructuring. We decided not to make the payment because we're in discussions with the lenders," he said. "At the end of the third quarter we had $88 million on hand, and could have made the payments."

The spokesperson would not confirm any plans for the restructuring.

"The restructuring talks are continuing and we expect to come to an agreement soon, but it's too early to comment on where the talks will end up," he said.

The Germantown, Md. communications test and management company said in February it had begun talks with its senior lenders on restructuring its bank debt, and added that it may file for Chapter 11.

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