Goodyear gets waivers on required $500 million contribution to pension plan

By Sara Rosenberg

New York, Feb. 6 - The Goodyear Tire & Rubber Co. obtained waivers from its lenders through March 7 on covenants that would require the company to contribute $500 million to its pension plan and maintain a minimum net worth.

Under the waiver, the company has full access to about $1.1 billion in two revolvers. Goodyear also has approximately $300 million in other committed and $400 million in uncommitted lines of credit available as of Dec. 31, 2002.

"The successful completion of these actions, accompanied by steps we have taken to enhance our revenue, improve our cost structure, preserve cash and strengthen our balance sheet, should provide us the financial resources, including access to capital markets, to meet the ongoing needs of our business and drive our turnaround," said Robert J. Keegan, president and chief executive officer, in a news release.

Furthermore, the Akron, Ohio tire company announced that its domestic accounts receivable facility, which was set to expire this month, was amended in December and extended until December 2003. Under the amendment, the minimum credit rating requirement was changed to BB-/Ba3 and the size was adjusted to $700 million.

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