ALCO gets waiver of default caused by election of new board members

By Toni Weeks

San Luis Obispo, Calif., Sept. 5 – ALCO Stores, Inc. amended its credit agreement on Thursday with Wells Fargo Bank, NA as administrative agent, collateral agent and term loan agent, according to an 8-K filing with the Securities and Exchange Commission.

Specifically, the credit facility was amended to waive any default arising as a result of the change of control that was caused by the election of new members of the board of directors at the annual stockholders meeting on Aug. 29.

At the meeting, seven new directors replaced seven incumbent directors, which created an event of default under the credit agreement.

With the amendment, the lenders, administrative agent and term loan agent agreed to waive any default arising as a result of the change of control, thus preventing any acceleration of the company’s obligations under the credit agreement.

ALCO is a broad-line retailer based in Coppell, Texas.

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