List Your Equipment  /  Dealer Login  /  Create Account

Gehl Company Reaches Forbearance Agreement With Lenders

Mon April 27, 2009 - National Edition
Construction Equipment Guide

Gehl Company’s principal source of liquidity is a revolving credit agreement entered into in October 2006 with a group of U.S. bank lenders with approximately $117 million outstanding as of March 31, 2009. As part of its ongoing discussions with its U.S. bank lenders, on April 16, 2009, the company entered into a Forbearance Agreement with the lender group.

The Forbearance Agreement rescinds and withdraws the notice of debt repayment delivered on March 31, 2009, allows the company access to credit under the revolving credit agreement and provides a 75-day time period to complete the negotiation of a further amendment to the credit agreement, subject to customary terms and conditions.

The company has repaid a portion of the outstanding borrowings to its lenders using cash generated from operations and anticipates making additional debt repayments in 2009 using cash generated from operations.

The company also anticipates entering into a long-term secured credit facility within the extension time period to replace the existing revolving credit agreement.

Today's top stories

Crews Continue Important Highway Corridor Project After 10-Year Lull

HCEA Announces Antique Construction Equipment Show Dates

New First-of-Its-Kind Machine Works On Lake Restoration

IDOT's $1.5B Council Bluffs Interstate Project Is Ahead of Schedule

ConExpo-Con/AGG, IFPE Announce Inaugural Next Level Awards Program

Cat 350 Excavator Delivery Productivity, Enhanced Sustainability

McGeorge Contracting Works to Complete King Expressway/Hot Springs Bypass Extension

Kirby-Smith Machinery Names Sam Schneider as General Manager, Industrial Equipment


ceg-logo ceg-logo ceg-logo ceg-logo ceg-logo
39.04690 \\ -77.49030 \\ Ashburn \\ VA