Champion Industries gets loan default notice

By Sara Rosenberg

New York, March 27 - Champion Industries Inc. received a notice of default because it did not meet financial covenants under its credit facility, according to an 8-K filed with the Securities and Exchange Commission on Friday.

The company was not in compliance with the EBITDA requirement, the leverage ratio and the second fixed-charge coverage ratio.

As a result, the default rate of interest has been instituted, effective March 25, increasing pricing by 300 basis points.

The company said that it is engaged in discussions with Fifth Third Bank, the administrative agent on the deal, and various lenders to restructure the credit facility.

Champion is a Huntington, W. Va.-based commercial printing, business forms manufacturing, and office products and furniture supply company.

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