Weigh-Tronix obtains waiver of bank covenant defaults until May 17

By Sara Rosenberg

New York, April 1 - Weigh-Tronix, LLC, in a Securities and Exchange Commission filing, announced that its credit facility has been amended to waive any defaults due to violation of financial covenants from March 22, 2002 to May 17, 2002. Fleet National Bank is the administrative and security agent for the credit facility.

The company was charged an amendment fee of $150,000, according to the filing.

As part of the agreement, the company must submit an updated business plan on or before April 12, 2002 and a financial consultant report on or before May 1, 2002 to the bank group, the SEC filing said. These plans will be used to "re-assess the Registrant's financial and other negative covenants", the filing added.

Weigh-Tronix has until May 17, 2002 to enter into an agreement with its lenders on a restructuring amendment, according to the SEC document. It will be considered an event of default if a restructuring amendment is not agreed upon by the designated date.

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