O'Sullivan Industries to use 30-day grace period for interest payment on 10.63% notes

By Caroline Salls

Pittsburgh, July 15 - O'Sullivan Industries, Inc. will use its 30-day grace period on the $5.3 million interest payment due Friday on its $100 million 10.63% senior secured notes, according to a company news release.

Using the grace period does not constitute an event of default under the notes indenture, the release said.

O'Sullivan has not decided whether it will make the interest payment before expiration of the grace period, according to the release.

The company said it plans to use the grace period to address its current capital structure and to continue initiatives to improve its liquidity position and operations.

O'Sullivan is also in discussions with representatives of its major stakeholders regarding strategic alternatives, including the potential for a consensual restructuring of its capital structure.

The company has retained Lazard Freres & Co. LLC to serve as its financial adviser and Dechert LLP as its legal adviser to assist with its evaluation of strategic alternatives and restructuring efforts.

O'Sullivan is a Lamar, Mo., manufacturer of ready-to-assemble furniture.

© 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.