Briggs & Stratton’s 30-day grace period on a $6.7 million interest payment expired on July 15, 2020, however the company has received a 4-day extension on its revolving credit agreement according to an 8-K filing with the U.S. Securities and Exchange Commission, reports the Milwaukee Business Journal.
The company now has until July 19 to make its payment before going into default. In addition, the amendment would waive the default of not paying the 6.875% interest on senior notes, which had been due on July 15.
The 8-K filing notes that Briggs & Stratton had $271.3 million in borrowings and $53.1 million in letters of credit on July 14. Availability under the credit agreement was $65.6 million, according to the Business Journal article.
The 8-K Filling said: “Although the Company is actively pursuing opportunities to improve its capital structure, some or all of the foregoing potential transactions or other alternatives may not be pursued by the Company, man not be available to it or may not be announced in the foreseeable future or at all. If the Company is unable to complete such a transaction or other alternative, on favorable terms or at all, due to market conditions or otherwise, its financial condition would be materially and adversely affected, and the Company would likely need to seek relief in bankruptcy proceedings.”
The full report is available here.