WARNACO GETS EXTENSION
NEW YORK — The Warnaco Group got some good news on Friday.
The troubled maker of sportswear and innerwear said it had gotten a month’s extension, until May 16, on a waiver of “certain financial covenants” from its lenders. The firm’s original waiver from those lenders had been due to expire today, according to filings with the Securities & Exchange Commission.
The company said it remains in discussions with its lenders to secure permanent amendments to its debt agreements “which are necessary to avoid a possible default.” Warnaco currently has a $2.56 billion line of credit.
As reported, the company, which recorded a $338.3 million net loss in fiscal 2000, last week saw its shares fall to a new 52-week low of 84 cents in Thursday’s trading on the New York Stock Exchange. (The NYSE was closed Friday.) The company, which recently settled a widely publicized suit with designer Calvin Klein over the licensed Calvin Klein Jeans business, has said that it doesn’t expect to return to profitability until next year.