DETROIT, Sept 16 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
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
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
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)