Great Lakes Aviation again amends credit terms, gets third forbearance

By Susanna Moon

Chicago, Sept. 29 – Great Lakes Aviation, Ltd. entered into the fifth amendment and third forbearance to its credit agreement on Sept. 23 with lenders and their agents Crystal Financial LLC and GB Merchant Partners, LLC, according to an 8-K filing with the Securities and Exchange Commission.

As of Sept. 23, the company was in breach of or expected to be in breach of three financial covenants under its credit agreement dated Nov. 16, 2011, the filing noted.

Under the forbearance, lenders agreed to temporarily forbear from exercising their rights and remedies under the credit agreement until the earliest of Dec. 1 and the date on which Great Lakes commits additional breaches of the credit agreement.

The company agreed to pay lenders an additional 200 basis points above the interest rates until the forbearance termination date.

Great Lakes agreed to execute a commitment no later than Oct. 31 with a financing source that will provide for the repayment of all obligations under the credit agreement by Dec. 1.

The company agreed to maintain minimum liquidity of at least $1 million.

The company also agreed to pay a forbearance fee of $75,000, to reimburse some out-of-pocket costs of the lenders and to reimburse attorneys’ fees and expenses.

Great Lakes Aviation is a Cheyenne, Wyo.-based regional airline company.

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