American Axle amends credit agreement

DETROIT, July 7 (Reuters) - American Axle & Manufacturing Holdings Inc (AXL.N) said on Tuesday it has reached an agreement with lenders to amend its credit facility in the face of a severe decline in vehicle production volumes.

The auto parts supplier said the new credit agreement provides a waiver of the financial covenants under its revolving credit facility through July 30.

During the waiver period, the company is required to maintain a daily minimum liquidity of $100 million, it said.

As of June 30, American Axle had about $280 million of liquidity, consisting of available cash, short-term investments and committed borrowing capacity on its credit facility.

American Axle, like other U.S. auto parts suppliers, has been hit hard by extensive production shutdowns at General Motors Corp GMGMQ.PK and Chrysler, along with the worst U.S. auto sales environment in nearly three decades.

(Reporting by Soyoung Kim, editing by Matt Daily)