MTS obtains extension on forbearance of credit facility

Chicago, June 12 - MTS Inc. has obtained an extended forbearance agreement from its senior lenders under its credit facility, and the lenders have agreed not to exercise their default rights, which arose after MTS failed to make the interest payment on its 9 3/8% senior subordinated notes due May 1.

In addition, MTS and its lenders amended the credit facility. Under the new terms the forbearance period will now terminate on Sept. 30, unless extended by agreement of the lenders, or if there is a restructuring of the notes or a sale or merger of the company that provides for the payment of all obligations under the credit facility.

The agent for the facility is CIT Group/Business Credit, Inc.

MTS, based in West Sacramento, Calif., is the parent of Tower Records.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.