Noble International gets loan forbearance agreement

By Sara Rosenberg

New York, Feb. 26 - Noble International Ltd. entered into a forbearance agreement, under which its credit facility lenders agreed to refrain from exercising remedies, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

As part of the agreement, the lenders' commitment to make revolving credit advances was terminated and the revolver was converted into a discretionary facility.

The forbearance was obtained on Feb. 24 and expires on March 23.

Comerica Bank is the agent on the deal.

In addition, the company entered into a 30-day, binding memorandum of understanding with General Motors Corp., Ford Motor Co., Chrysler LLC and Comerica Bank, under which the auto companies agreed to expedited payment of amounts owed to the Noble and agreed to provide a limited amount of short-term financing through the purchase of subordinated participations in the credit facility.

Noble is facing liquidity pressure due to significant deterioration of business conditions facing North American and European vehicle manufacturers.

It is as a result of this liquidity pressure that the company entered into the forbearance and the memorandum of understanding.

The company continues to work with its advisors to analyze and consider strategic alternatives and to identify both short- and long-term funding solutions.

Noble is a Troy, Mich.-based provider of laser-welded blanks, tubular products and roll-formed products for the automotive industry.

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