Aurora continues to negotiate restructuring
Sep 16, 2003 12:00 PM, from staff and wire reportsSt Louis MO-based Aurora Foods Inc, a marketer of frozen food brands, has requested that its senior lenders and noteholders formally extend the forbearance agreements that expired Sept 15, 2003. The request is based upon progress made in discussions among Aurora, its creditors, and J W Childs Associates LP.
Aurora is undertaking a financial restructuring to reduce its outstanding indebtedness, strengthen its balance sheet, and improve liquidity. It entered into a definitive agreement July 11, 2003, with an affiliate of J W Childs, in which J W Childs agreed to make a $200 million investment for a 65.6% equity interest in the reorganized company.
While discussions continue, none of Aurora's creditors has tried to enforce remedies arising from the company's decisions to defer paying interest on outstanding senior subordinated notes and to suspend its divestiture program. Aurora believes it has sufficient liquidity to finance its operations through completion of restructuring.