Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers A > Headlines for Applied Extrusion Technologies Inc. > News item |
Applied Extrusion hires advisers, starts bank talks; bondholders form committee
New York, June 16 - Applied Extrusion Technologies Inc. said it is exploring financing and strategic alternatives for its capital structure and has hired Miller Buckfire Lewis Ying & Co. LLC as financial adviser and Shearman & Sterling LLP as special counsel.
In addition, at the company's request holders of its 10¾% senior notes have formed an ad hoc committee. Holders taking part hold a majority of the securities.
Applied Extrusion is also examining proposals for an additional $35 million of financing which could be funded by July 30, the expiration of the grace period for the upcoming coupon payment on its notes.
The New Castle, Del., maker of polypropylene films also said it is working with its bank group to amend covenants in its credit facility to reflect recent developments.
Earnings for the second half are expected to be lower than anticipated, Applied Extrusion said. Specifically, it expects operating earnings and EBITDA to be "materially less" than for the six months ended March 31, 2004.
While shipments of film should increase - though be less than previously forecast - the costs of petroleum and related products such as propylene and polypropylene resin, the company's primary raw material, have escalated rapidly. Applied Extrusion said it has not been able to increase the prices it charges enough to cover the higher expenses.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.