Wabash National and its bank group have entered into a forbearance agreement on a revolving line of credit, with the bank group agreeing to refrain from accelerating maturity on the line of credit through May 29.
A $22.5 million reserve was established, adjusted downward from the $25 million reserve previously announced.
Wabash's liquidity (cash plus available borrowings) was approximately $13 million, as of April 30, according to the Lafayette (IN) Journal and Courier.
“Completing the forbearance agreement is an important step in the continuing process of working with our bank group to reach a satisfactory resolution as it relates to our near-term capital requirements,” said Dick Giromini, Wabash National president and chief executive officer.
“We intend to use this time to continue to negotiate an appropriate capital structure that will support our near-term liquidity requirements and long-term strategic plans.”
Facing a uncertain future — possibly including divesting some business components or a possible sale, merger, or other business combination — Wabash has cut 180 salaried employees. It also has implemented a 10 percent pay cut for remaining salaried workers and executives, and has approximately 800 production workers on layoff status, which started in December.
BB&T Capital Markets has been retained as the company's exclusive financial advisor to assist in the consideration of various corporate strategic alternatives. In engaging BB&T Capital Markets, a division of Scott & Stringfellow LLC, Wabash National is initiating an extensive review of alternative strategies for maximizing shareholder value.