Wabash National Looks to Uncertain Future
Apr 20, 2009 1:45 PM
Wabash National has expressed concerns about its viability in documents the company has filed with the Security and Exchange Commission.
“There is substantial doubt about our ability to continue as a going concern,” the company said in its annual Form 10-K.
Wabash did not file the report until mid-April, a delay caused in part by efforts to renegotiate financial commitments.
The trailer manufacturer said that it has limited liquidity and may need to arrange for additional liquidity on terms described as “unfavorable.” The company also said that it likely will need to issue new equity or obtain additional sources debt.
“Our ability to obtain additional liquidity will depend upon a number of factors, including our future performance and financial results and general economic and capital market conditions.”
The board of directors has authorized management to pursue a wide range of strategic alternatives, including select business divestitures, changes to the company’s capital structure, or a possible sale, merger or other business combination.
Wabash has idled the former Transcraft plant in Mt. Sterling, Kentucky, and has it on the market. The company also has extended normal shutdown periods and has reduced salaried head-count levels.
“Our priority continues to be working diligently with our lenders to renegotiate our revolving credit facility and improving our liquidity position,” said Dick Giromini, president and chief executive officer. “However, as stewards of the company we recognize our responsibility to act prudently. Thus, we are exploring all of our options to maximize shareholder value.”
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