MCSi is granted forbearance period until May 2

By Sara Rosenberg

New York, April 4 - MCSi Inc.'s secured credit facility lenders have agreed to a forbearance period until May 2, during which time the parties will work towards developing a longer term restructuring plan.

As previously reported, the company is in violation of certain financial and other covenants under the agreement, including consolidated total debt/consolidated EBITDA ratio for the period ended Dec. 31, 2002 and the fixed charge coverage ratio for the period ended Dec. 31, 2002. Furthermore, the company anticipates not being in compliance with these covenants for the period ended March 31, 2003, according to a filing with the Securities and Exchange Commission.

If the restructuring is unsuccessful, once the forbearance period is over, lenders could exercise certain remedies available to them including an acceleration of all amounts due under the credit facility, according to a news release.

As of April 4, the balance outstanding under the facility was approximately $90 million.

PNC Bank is the administrative agent, collateral agent, swing line lender and letter of credit issuer. National City Bank is the documentation agent.

MCSi is a Dayton, Ohio systems integrator of state-of-the-art presentation and broadcast facilities.

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