Essex Rental may request additional revolving loans through March 14

By Marisa Wong

Morgantown, W.Va., Dec. 1 – Essex Crane Rental Corp., a wholly owned subsidiary of Essex Rental Corp., entered into a fourth forbearance agreement on Nov. 25, according to an 8-K filing with the Securities and Exchange Commission.

The forbearance agreement, effective as of Nov. 23, is the direct result of previously disclosed events of default under Essex Crane’s fourth amended and restated credit agreement with Wells Fargo Capital Finance LLC as administrative agent.

Under the terms of the latest forbearance agreement, Essex Crane is permitted to request additional loans under its revolver through the period ending March 14.

In exchange, Essex Crane must engage an asset disposition firm for marketing, selling and disposing of the company’s non-core assets. The sale of these non-core, or underutilized, assets is not expected to have a significant impact on the company’s future rental revenue cash flow, the filing noted.

Additionally, Essex Crane is required to hire an investment banker to prepare, market and carry out strategic alternatives, including the sale of all, or substantially all, of Essex Crane’s assets.

The company expects that it will be able to continue to use the revolver to fund operations during the term of the forbearance.

Essex is a provider of rental and distribution for mobile cranes based in Buffalo Grove, Ill.

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