Meadowbrook insurance cluster, inc. announced that it really has obtained a waiver from parts of the lending cluster underneath its bank credit facility ( the “facility” ) on bound defaulted loan covenants.
As reported previously, the corporate was in default on 2 of its monetary covenants underneath the facility as of june 30, 2013, together with its net worth covenant. the defaults were triggered by an after-tax non-cash goodwill impairment of $101. 5 million the corporate recorded within the second quarter, that directly impacted the company’s book worth.
Karen m. spaun, the company’s chief monetary officer, stated : “we are continuing to labor with this bank cluster to negotiate an modification towards the credit facility to regulate the monetary covenants. absent the non-cash goodwill impairment, we'd are in compliance with all our monetary covenants. ”
The waiver actually works till september 20, 2013, and includes specific authorization for our company to pay out its scheduled common stock dividend on monday, august 26, 2013. the corporate is progressing in its discussions with its lenders to re-set the covenants to reflect the impact of one's goodwill charge. the corporate expects to execute and announce an modification to its facility within the coming weeks.
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