Westaff lenders extend covenant default forbearance through Sept. 30

By Caroline Salls

Pittsburgh, Aug. 29 - Westaff, Inc. has entered into a new forbearance agreement with U.S. Bank NA and Wells Fargo Bank NA in connection with bank covenant defaults that occurred on April 19, according to a company news release.

Under the forbearance agreement, the banks will not exercise any of their default-related remedies through Sept. 30.

As previously reported, the lenders agreed on Aug. 5 not to act on the defaults through Aug. 26.

"We agreed to this short-term forbearance while we continue to work with our banks to develop a longer-term arrangement," Westaff senior vice president and chief financial officer Christa Leonard said in the release.

"This agreement provides us additional time while we continue to focus on improving our financial performance."

Westaff is a Walnut Creek, Calif.-based temp agency.

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