MAAX lenders increase Canadian revolver commitment to C$55 million, forbearance extended to June 12

By Caroline Salls

Pittsburgh, April 1 - MAAX Corp.'s senior secured lenders increased the company's Canadian revolving credit facility commitment to C$55 million under an agreement that also extends MAAX's default forbearance period through June 12, according to a company news release.

The senior secured lenders include collateral agent, administrative agent and lender Brookfield Bridge Lending Fund Inc., as well as HSBC Bank Canada.

The company said the increased revolver commitment represents a C$30 million increase to its credit facility.

Under the amended forbearance agreement, the company will continue to have full access to its revolving credit facility.

In addition, MAAX said it has developed a sales process under which the company will begin marketing its business in order to reduce its overall debt and improve its capital structure and liquidity.

The company said it will also continue its discussions with key stakeholders.

"The measures announced today will enable the company to meet its ongoing obligations, continue to operate without interruption and deal with customers, suppliers and other stakeholders in the normal course while pursuing its goal," MAAX president and chief executive officer Paul Golden said in the release.

"Our goal is to reduce the company's debt and remain a successful North American competitor in a rapidly changing marketplace."

MAAX is a Montreal-based manufacturer of bathroom and spa products.

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