La Petite Academy obtains limited waiver of non-compliance through Nov. 1

By Sara Rosenberg

New York, Oct. 2 - La Petite Academy Inc. obtained a limited waiver through Nov. 1 under which its bank lenders have agreed to waive events of default that occurred due to non-compliance with certain financial covenants for the fourth quarter ended June 29, according to a filing with the Securities and Exchange Commission. Bank of America is the administrative agent, documentation agent and collateral agent on the facility. Chase Bank of Texas acted as syndication agent.

In addition, the company anticipates that it will be unable to comply with some financial covenants in the first quarter of 2003 and is therefore continuing discussions with lenders over a permanent waiver and amendment to its financial covenants, commencing with the period ending June 29 and based on current operating conditions and projections.

La Petite is a Chicago, Ill. operator of preschool and childcare facilities.

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