Salton extends forbearance period, gets ok to pay bond interest payment

By Sara Rosenberg

New York, June 10 - Salton Inc. amended its forbearance agreement with senior lenders, extending the forbearance period to Sept. 30 and allowing the company to pay the approximately $6.7 million interest payment due on June 15 under its 10¾% senior subordinated notes if availability under the credit agreement is at least $10 million after the payment.

The company needed the forbearance agreement since it failed to comply with some financial covenants in its senior debt.

The forbearance period is conditioned on a number of things, including the deliverance of a commitment letter to senior lenders by June 25 for additional funding of at least $25 million on terms acceptable to those lenders and the receipt of the additional financing by July 12, according to a company news release.

Terms of the funding is being negotiated with a number of parties, the release added. Houlihan Lokey Howard & Zukin Capital has been assisting Salton with its examination of various capital-raising opportunities.

Salton is a Lake Forest, Ill., designer, marketer and distributor of small appliances, home decor and personal care products.

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