United Fuel amends, getting forbearance agreement of fixed-charge coverage non-compliance

By Sara Rosenberg

New York, Jan. 3 - United Fuel & Energy Corp. amended its credit facility, getting lenders to agree to forbear until March 7 from exercising their rights and remedies due to non-compliance with the fixed-charge coverage ratio, according to an 8-K filed with the Securities and Exchange Commission Thursday.

The amendment also increases pricing on the credit facility by 60 basis points during the forbearance period.

In addition, the amendment temporarily increases the company's revolver by $10 million to $80 million.

In lieu of the company's compliance with the fixed-charge coverage ratio, during the forbearance period it will be required to maintain certain minimum levels of EBITDA.

The amendment was completed on Dec. 28.

CIT is the administrative agent on the deal.

United Fuel is a Midland, Texas-based distributor and seller of fuel and lubricant products to customers in rural markets.

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