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EX-10.2 - EXHIBIT 10.2 - CHAMPION INDUSTRIES INC | ex102.htm |
EX-10.1 - EXHIBIT 10.1 - CHAMPION INDUSTRIES INC | ex101.htm |
EX-10.3 - EXHIBIT 10.3 - CHAMPION INDUSTRIES INC | ex103.htm |
8-K - FORM-8K - CHAMPION INDUSTRIES INC | e8k.htm |
EXHIBIT
99.1
CHAMPION
AMENDS CREDIT AGREEMENT
Huntington,
WV- - Champion Industries, Inc. (NASDAQ/CHMP) announced that it has today
amended its Credit Agreement dated September 14, 2007 (“Credit Agreement”). The
Second Amendment and Waiver to Credit Agreement dated March 31, 2010
(the “Amendment”) is intended to allow Champion the covenant flexibility to move
forward with its strategic initiatives and enable the Company to navigate the
difficult environment encountered as a result of the global economic
crisis.
The
Amendment provides for extensive covenant relief including higher leverage
ratios, lower fixed charge coverage ratios, lower EBITDA thresholds, EBITDA
definition modifications, a reinstitution of LIBOR borrowings and a reduction in
minimum revolving loan availability thresholds. The Company is also subject to
various new covenants as further described and defined in the
Amendment.
Marshall
T. Reynolds, Chairman of the Board and Chief Executive Officer of Champion,
said, “It is critical in difficult economic times to work out appropriate
solutions with your banking partners. This assures stability in the markets and
allows a company reasonable flexibility to run its business. We have previously
indicated we expect several more difficult quarters of market instability but
believe this covenant package puts us in a position to work through these
economic challenges.”
The
Amendment is subject to certain conditions, including but not limited to the
Contribution Agreement and Cash Collateral Security Agreement (the “Contribution
Agreement”) which will require Mr. Reynolds to provide to the Administrative
Agent cash collateral and/or a standby letter of credit, in an aggregate amount
of not less than $2,500,000 under terms which are further defined in the
Contribution Agreement.
At
February 28, 2010, the Company had approximately $61.8 million of interest
bearing debt. Our interest bearing debt has been reduced by approximately $22.6
million since October 31, 2007 through utilization of our earnings, cash flow
and working capital management. The Company is subject to various restrictive
financial covenants requiring the Company to maintain certain financial ratios.
The Company, pursuant to the terms of the Amendment has received waivers for
violations outstanding prior to the effective date of the
Amendment.
The
Company intends to file a related Form 8-K today with the United States
Securities and Exchange Commission. This filing will provide additional
information regarding the financial and non-financial covenants, pricing and
other related changes to the Credit Agreement pursuant to the
Amendment.
Champion
is a commercial printer, business forms manufacturer and office products and
office furniture supplier in regional markets east of the Mississippi. Champion
also publishes The Herald-Dispatch daily newspaper in Huntington, WV with a
total daily and Sunday circulation of approximately 24,000 and 30,000,
respectively. Champion serves its customers through the following
companies/divisions: Chapman Printing (West Virginia and Kentucky); Stationers,
Champion Clarksburg, Capitol Business Interiors, Garrison Brewer, Carolina Cut
Sheets, U.S. Tag and Champion Morgantown (West Virginia); Champion Output
Solutions (West Virginia); The Merten Company (Ohio); Smith & Butterfield
(Indiana and Kentucky); Champion Graphic Communications (Louisiana); Interform
Solutions and Consolidated Graphic Communications (Pennsylvania, New York and
New Jersey); Donihe Graphics (Tennessee); Blue Ridge Printing (North Carolina)
and Champion Publishing (West Virginia, Kentucky and Ohio).
Certain
Statements contained in the release, including without limitation statements
including the word “believes”, “anticipates,” “intends,” “expects” or words of
similar import, constitute “forward-looking statements” within the meaning of
section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results, performance
or achievements of the Company to be materially different from any future
results, performance or achievements of the Company expressed or implied by such
forward-looking statements. Such factors include, among others, general economic
and business conditions, changes in business strategy or development plans and
other factors referenced in this release. Given these uncertainties, prospective
investors are cautioned not to place undue reliance on such forward-looking
statements. The Company disclaims any obligation to update any such factors or
to publicly announce the results of any revisions to any of the forward-looking
statements contained herein to reflect future events or
developments.
Contact:
Todd R. Fry, Chief Financial Officer at
304-528-5492