BMC Industries obtains third 60-day waiver of non-compliance with covenants

By Sara Rosenberg

New York, Nov. 19 - BMC Industries Inc. said it has received an additional 60-day waiver to comply with some covenants contained in the company's credit agreement.

The waiver extends the time period for the company to make scheduled principal and fee payments until Jan. 13, 2004, the termination date of the waiver. Furthermore, all interest payment obligations have been deferred through Jan. 13 as well.

The waiver also requires that the net proceeds of asset sales and other cash flows be paid to the lenders and applied against interest and principal obligations. Since July 30, the company has incurred interest obligations of $3.2 million and made interest payments of $2.4 million.

The company first obtained a two week waiver on June 30, and then obtained a 60-day waiver on July 15 and Sept. 15, due to the expectation that the company would be out of compliance with covenants as of June 30, according to a company news release.

BMC is a Minneapolis producer of polycarbonate, glass and plastic eyeware lenses, and manufacturer of precision photo-etched metal and electroformed parts, aperture masks used in color TV and computer monitors.

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