MGPI lenders extend credit deadline
March 04, 2009
by Bakingbusiness Staff
ATCHISON, KAS. — MGP Ingredients Inc. in a March 3 filing with the Securities and Exchange Commission said its lenders have extended the deadline for taking action on the company’s default on its credit facility to March 13 from Feb. 26.
In the filing, MGPI said its lenders reduced the amount they would lend the company under the credit agreement to $40 million from $44.7 million and required MGPI to submit to the lenders an operating plan by March 6 outlining how the company intends to improve its financial position with the ultimate goal of repaying the lenders.
MGPI said it now expects a principal stockholder to make a $2 million secured loan to the company, contingent on several conditions, including the consent of lenders under the credit facility and the agreement of lenders under the facility to extend the credit facility’s forbearance period to at least Sept. 3.
Also as part of the S.E.C. filing, MGPI said its executive officers and certain other executives have agreed to defer a portion of their base salaries, up to 50%, until June 30.