In Brief: Dep
This article was originally published in The Rose Sheet
Executive Summary
Dep: Receives bank loan waiver from its lenders for non-compliance with "certain financial covenants" tied to the company's fiscal 1995 second (ended Jan. 31) and third quarters (ending April 30), Dep reports April 20. Without the waiver, Dep said it would have been in "technical non-compliance" after showing a net loss of $745,000 in the first half of fiscal 1995. Dep announced plans to seek the waiver when it predicted a second-quarter loss on Feb. 8 ("The Rose Sheet" Feb. 13, p.10). As part of the agreement, Dep's working capital line of credit is temporarily reduced from $28 mil. to $25 mil., of which approximately $4.2 mil. is available as of April 20. Dep also has retained independent consultants to help develop a "strategic business plan" to be submitted to lenders by July 31. The company announced cost-cutting measures in March ("The Rose Sheet" March 27, p. 7)...