If Newark folds.. bodes well for CSAR less one competitor. I believe we are very close to getting back to value of CSAR. No selling @ these levels is a great sign. C you > .50 by June IMO
-Hero
Item 1.01 Entry into a Material Definitive Agreement.
On April 3, 2009, The Newark Group, Inc. (the “Company”) and the holders of approximately 74% (the “Holders”) of its 9-3/4% Senior Subordinated Notes due 2014 (the “Notes”) issued pursuant to the Indenture (as defined below) entered into a Limited Waiver and Forbearance Agreement (the “Forbearance Agreement”). Pursuant to the Forbearance Agreement, the Holders agreed to forbear from exercising certain rights as a result of the occurrence of certain events of default under the Notes and under the Indenture dated as of March 12, 2004 among the Company, certain guarantors and The Bank of New York, as Trustee (the “Indenture”). The events of default for which the Holders agreed to forbear relate to the Company’s failure to pay semi-annual interest on March 15, 2009 on $175 million of outstanding Notes and its failure to file with the Securities and Exchange Commission its quarterly report on Form 10-Q for the quarter ended January 31, 2009.
The Company was entitled to a 30 day grace period with respect to each of the above defaults. The Forbearance Agreement extends that grace period until May 31, 2009, subject to certain conditions. The extended grace period is designed to give the Company additional time to negotiate changes to its capital structure with the Holders as well as with lenders under its two senior secured credit facilities. As previously disclosed, on February 20, 2009, the Company entered into a separate forbearance agreement with respect to defaults under its asset-based senior secured revolving credit facility (the “ABL Facility”) and it has been discussing financing matters with lenders under that facility as well as the lenders under its credit-linked loan facility (the “CL Facility”), under which the Company is also in default due to issues similar to those under the ABL Facility. Neither the lenders under the ABL Facility nor the lenders under the CL Facility have taken any action to accelerate the obligations due under their respective agreements.
