Nutritional supplement manufacturer Leiner Health Products Inc. announced this week that it has reached an agreement in principle with its lenders to extend its previously announced forbearance period until the completion of its financial restructuring.
The previous forbearance agreement that Leiner had entered into with its bank lenders terminated on December 14. The extension will enable the company to finalise the terms of and implement its financial restructuring plan.
Robert Kaminski, Chief Executive Officer, said, "We are pleased that our financial restructuring solution has been designed to leave our suppliers unimpaired. Thanks to the continued support of our bank lenders, we are confident that the terms of our financial restructuring plan will be finalised and implemented as planned over the next few months.''
The forbearance agreement will continue to require through the end of the forbearance period, a one percent increase in the applicable margin and that the proceeds of any antitrust litigation be used to prepay outstanding bank debt.