Penn Traffic Lenders Agree to Limited Waiver to Working Capital Credit Facilities
SYRACUSE, N.Y.-- The Penn Traffic Co. here said this week that its working capital credit facility lenders have agreed to waive certain provisions of its credit facility agreements and, consequently, the parties agreed to extend the deadline for the company to deliver fiscal year 2006 audited financials to July 10.
As of July 2, the company completed its fiscal 2006 audited financials and now expects to include them in a public SEC filing around the end the month.
The waiver also provides for extending the completion period of Penn Traffic's fiscal 2007 audited financials to Sep. 30, and addresses an error calculating the cost of pharmaceutical inventory for purposes of determining the borrowing base calculation. After correcting the error, the grocer was in compliance with the borrowing base calculation mentioned in the credit agreement.
"We have gained considerable ground in recent months in implementing our strategic plan to re-establish Penn Traffic as an industry leader," said Penn Traffic president and c.e.o. Robert Panasuk in a statement, adding that the company was focusing "on meeting the terms of our credit agreements and building on the financial and operating progress achieved during the first half of calendar 2007."
In other Penn Traffic news, the grocer's Penny Curtiss bakery division said this week that it has lost its contract to bake for Batavia, Ill.-based limited-assortment retailer Aldi, according to published reports. The business is scheduled to phase out next month. Penn Traffic said in a statement that it was too early to gauge the effect on Penny Curtiss' 200 employees, but that it was "making every effort to minimize any potential impact."
As of July 2, the company completed its fiscal 2006 audited financials and now expects to include them in a public SEC filing around the end the month.
The waiver also provides for extending the completion period of Penn Traffic's fiscal 2007 audited financials to Sep. 30, and addresses an error calculating the cost of pharmaceutical inventory for purposes of determining the borrowing base calculation. After correcting the error, the grocer was in compliance with the borrowing base calculation mentioned in the credit agreement.
"We have gained considerable ground in recent months in implementing our strategic plan to re-establish Penn Traffic as an industry leader," said Penn Traffic president and c.e.o. Robert Panasuk in a statement, adding that the company was focusing "on meeting the terms of our credit agreements and building on the financial and operating progress achieved during the first half of calendar 2007."
In other Penn Traffic news, the grocer's Penny Curtiss bakery division said this week that it has lost its contract to bake for Batavia, Ill.-based limited-assortment retailer Aldi, according to published reports. The business is scheduled to phase out next month. Penn Traffic said in a statement that it was too early to gauge the effect on Penny Curtiss' 200 employees, but that it was "making every effort to minimize any potential impact."