US Wellman fails to comply with finance terms

22 July 2008 22:58  [Source: ICIS news]

HOUSTON (ICIS news)--The most recent pre-tax earnings of bankrupt US producer Wellman fell below the minimum required by its debtor-in-possession (DIP) credit agreement, the company said on Tuesday.

Wellman filed for bankruptcy protection earlier this year. The company produces polyethylene terephthalate (PET).

Under the terms of the credit agreement, Wellman was required to have at least $15.8m (€9.96m) in cumulative earnings before interest, taxes, depreciation and amortisation (EBITDA), the company said.

The $15.8m represents the company's total EBITDA from March-June, Wellman said.

The company missed the $15.8m minimum, Wellman said. Its lenders agreed to temporarily waive the requirement.

($1 = €0.63)

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By: Al Greenwood
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