Sterling Shoes won't make Oct. 31 payment on convertible debentures

By Caroline Salls

Pittsburgh, Sept. 27 - Sterling Shoes Inc.'s board of directors has decided that the company will not make the interest payment due Oct. 31 on its unsecured subordinated convertible debentures, according to a company news release.

The company said it will not make the interest payment on the convertible debentures because of a continued challenging retail environment and its current cash flow situation.

According to the release, Sterling has reached an agreement with senior lender the Bank of Montreal on an amended credit facility. The facility includes provisions and covenants that must be met in order to retain the ability to maintain the interest payments required on the convertible debentures.

Sterling Shoes is a Vancouver, B.C.-based footwear retailer.

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