Syratech says hires financial adviser, will not be compliance with revolver on Dec. 31

By Jeff Pines

Washington, Aug. 13 - Syratech Corp. hired financial adviser Peter J. Solomon Co. LP to advise it in negotiations with the company's lenders and debt holders, it reported in a 10-Q filed Friday with the Securities and Exchange Commission. The adviser will also look into financing alternatives.

The company has a $70 million senior revolver, which is secured by inventory and accounts receivables.

Syratech, which makes tableware, has notified its lenders that it will not be in compliance with the EBITDA covenant on Dec. 31 and does not expect to have $20 million in borrowing availability at Dec. 31 as is required under the agreement.

If the negotiations are unsuccessful, Syratech will not have access to enough money to fund its operations after Dec. 31, it said.

East Boston, Mass.-based Syratech also has $118.3 million of 11% senior notes due April 15, 2007 outstanding.

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