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The Spiegel Group plans to file SEC forms upon completion of its bank loan restructuring
By Sara Rosenberg
New York, June 3 - The Spiegel Group said it is still working on restructuring its existing credit facility, which was originally anticipated to be completed in mid-April. However, the company added that it has enough liquidity to support day-to-day operations.
Once the negotiations are completed and new credit facilities are in place, the Downers Grove, Ill. international specialty retailer intends to file its Form 10-K for fiscal year 2001 and Form 10-Q for first quarter 2002.
"Our discussions are far advanced, the lead banks and the overwhelming majority of the bank group are in favor of the proposed agreement," said Jim Cannataro, executive vice president and chief financial officer, in a news release.
Spiegel's majority shareholder has agreed with the bank group to provide financial support to the company, according to the release.
"The company believes that by having the new credit facilities in place prior to filing its financial statements for the 2001 fiscal year, it will receive an unqualified audit opinion from its outside auditor," the release said.
Due to the delay in filing forms with the Securities and Exchange Commission, Nasdaq delisted the company's Class A common stock, effective Monday.
Negotiations on the bank loan are taking longer than expected due to glitches in the effort to sell its credit card operations and the suit against MBIA Insurance Corp. for declaring a "Pay Out Event" under two asset-backed securities offerings, according to an April 19 press release. On May 29, the company and MBIA reached an agreement in which the company dismissed its litigation and MBIA withdrew its letter declaring the "Pay Out Event".
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