GenTek's bank lenders block payment of note coupon

New York, July 30 - GenTek Inc. said the lenders on its senior credit facility issued a blockage notice preventing the company from making the scheduled Aug. 1 interest payment on its 11% senior subordinated notes due 2009.

GenTek said terms of its credit facility allow the lenders to issue one payment blockage notice in any 12-month period while the company is in default on its facility.

The Hampton, N.H. telecommunications and industrial products manufacturer said it has a 30-day grace period before non-payment of the note coupon becomes a default.

Discussions have been under way with the bank lenders on an amendment to the credit facility but so far no agreement has been reached, GenTek said. It added that it is now considering restructuring alternatives.

GenTek said it has $140 million of cash on hand.

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