American Axle gets 4th waiver on credit facility
DETROIT, Sept 16
DETROIT, Sept 16 (Reuters) - Auto parts supplier American Axle & Manufacturing Holdings Inc (AXL.N) said on Wednesday its creditors had agreed to a fourth waiver of the terms on its revolving credit facility as it negotiates a restructuring that would keep it out of bankruptcy.
Detroit-based American Axle, a major supplier to General Motors Co [GM.UL], said in a filing with securities regulators that creditors had agreed to extend a waiver of covenants on its credit facility until Thursday.
The previous waiver had expired on Wednesday. That waiver had been granted on Aug. 31.
"(American Axle) continues to work with key stakeholders on various commercial agreements and financing arrangements that would result in a comprehensive long-term solution outside of bankruptcy," the company said in a filing with the Securities and Exchange Commission.
"The current extension of the waiver period provides additional time to finalize the definitive terms and conditions of such commercial agreements and financing arrangements," it said.
American Axle had only $1 million available on its credit facility at the end of June. The revolving credit facility has allowed the company to borrow up to $476.9 million through April 2010.
As it negotiates with lenders on new terms, American Axle is required to maintain at least $75 million in cash, the company has said.
Shares in American Axle have rallied sharply since late July on expectations that the company will be able to reach a deal with its creditors that would avert a bankruptcy filing.
The stock traded as low as $1.12 in late July. On Wednesday afternoon American Axle shares were up 3.5 percent to $8.18 on the New York Stock Exchange.
Last month, American Axle reached an agreement in principle with GM under which it would receive $110 million in payments from GM to help recover costs associated with the automaker's bankruptcy process.
GM also agreed to provide a second-lien term loan facility of up to $100 million.
Major lenders to American Axle include JPMorgan Chase & Co (JPM.N), Bank of America Merrill Lynch (BAC.N) and Wachovia Corp, owned by Wells Fargo & Co (WFC.N).
(Reporting by Kevin Krolicki; Editing by Phil Berlowitz)