Atlas Cold Storage obtains waivers, new C$19.7 million revolver

By Jeff Pines

Washington, April 1 - Atlas Cold Storage Holdings Inc.'s lenders agreed to waive all of its defaults and give it a new C$19.7 million revolver, Atlas Cold Storage Income Trust said.

Since it is now in compliance with term of its loan, the company expects to get waivers of past defaults from lenders under certain capital leases mostly for computer and material handling equipment.

RBC Capital Markets will advise the company on recapitalization alternatives, Atlas said.

The company, which owns a temperature-controlled distribution network, already has C$205 million outstanding on its existing credit facility, and the bankers have reestablished it as term facility.

The term loan and the revolver mature July 23.

The interest rate on the new revolver will be Libor plus 450 basis points.

Based on the current situation, Atlas said it believes that its cash on hand, expected cash flow from operations and the available capacity under its revolving facility to meet its anticipated requirements before the facilities mature.

Interest on the company's 12% convertible debentures due June 30 also will continue to accrue. Atlas expects the debentures will be converted into trust units.

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