La Petite Academy receives waiver of defaults

New York, April 24 - La Petite Academy, Inc. said it obtained a waiver through May 31 of defaults on its credit agreement after failing to comply with information covenants.

The Chicago operator of preschool and childcare facilities said it received the waiver on April 22 and is in discussions with its lenders about a permanent waiver of the defaults.

La Petite Academy failed to comply with the covenants because it discovered while preparing information for its 10-Q reports for the quarters ended Oct. 19, 2002 and Jan. 11, 2003 that information previously provided to the bank lenders for the 32 week period ending Feb. 8, 2003 overstated income before taxes.

In addition, the company failed to provide financial information for the 36 week period ending March 8 and the quarter ended Jan. 11 within the time required.

La Petite Academy also failed to provide a list of assets it acquired during the four weeks to March 8 within the required time period.

Finally it failed to comply with the covenant specifying deadlines for filing its 10-Q reports with the Securities and Exchange Commission for the quarters ended Oct. 19, 2002 and Jan. 11, 2003.

La Petite Academy announced a previous amendment to its credit facility in February after a series of earlier waivers.

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