Wabash divestiture negotiations halted
Feb 13, 2003 12:00 PM
Negotiations for the sale of Wabash National Corporation’s rental and leasing operations have been discontinued, according to a Wabash announcement.The trailer manufacturer had been negotiating with an unnamed party. Although these specific negotiations have been discontinued, Wabash will continue to evaluate various alternatives for its rental and leasing subsidiary, including discussions with other interested parties.
“We continue to pursue all possibilities to improve the financial strength of the company,” said Mark Holden, senior vice-president and chief financial officer. “However, we will not dispose of businesses or assets below what we believe their value to be.”
Wabash had anticipated using the proceeds from the divestiture to reduce indebtedness.
“By doing so, we sought to facilitate discussions with our lenders to amend the credit facilities and waivers of the related financial covenants,” Holden said. “The company continues to have discussions with its lenders regarding credit facilities and the related financial covenants.”
Wabash expects to update investors on the status of those discussions at its fourth quarter earnings call February 24.
