Dan River obtains waiver of expected fourth quarter covenant violations

New York, Dec. 19 - Dan River Inc. said it obtained a second amendment and waiver agreement from its bank lenders for anticipated violations of covenants for the fourth quarter.

Covered by the amendment are the minimum fixed charge coverage and maximum leverage ratios.

The amendment also puts monthly limits on capital expenditures and sets minimum levels of excess availability under the company's revolver. Dan River will also be required to meet monthly operating EBITDA targets during the first quarter.

The Danville, Va. designer, manufacturer and marketer of products for the home fashions and apparel fabrics markets previously amended its credit facility on Oct. 14 to waive the maximum leverage ratio covenant violation that existed at the end of the third quarter and revising requirements during the fiscal fourth quarter, including the minimum levels of excess availability under the revolver and monthly operating EBITDA.

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