Furniture Brands International Inc. has agreed to put up some property as collateral, according to a regulatory filing Thursday.
In exchange for modifying the debt covenants to loosen restrictions on its required debt-to-earnings ratio, Furniture Brands put up as collateral its personal property, including accounts receivables, cash, inventory and intangible goodwill.
This gives the firm expanded borrowing power. The company cut its sales projections March 14, saying it expects its first-quarter net sales to drop nearly 15 percent.
The amendments to the covenants expire June 29, and the company said it will try to negotiate additional, more permanent amendments or refinancing prior to that deadline.
In the SEC filing Thursday, Furniture Brands said it reduced Holliman’s 2007 base salary by 25 percent to $694,000 from $925,000, effective April 16. The firm did not offer an explanation for the pay cut.
St. Louis-based Furniture Brands International Inc. manufactures furniture under the Thomasville, Henredon, Drexel Heritage, Maitland-Smith, Broyhill and Lane brands.
Published April 20, 2007 by the St. Louis Business Journal bizjournals.com
