Quaker Fabric Amends Credit Line, Fires Two Executives

March 23, 2006  by in UnCategorized   

By Home Furnishings Business in on March 2006 Quaker Fabric has amended its five-year, senior secured credit line and has hired a financial consulting firm for advice on its financial situation and its operating plans.

Last week, the Fall River, Mass.-based fabric supplier reported a delay in filing its 2005 annual report with the Securities Exchange Commission to allow more time to work with its lenders to address two items of default under terms of the credit agreement.

Additionally, the company announced Friday morning that its vice president of supply chain management and its vice president and chief information officer have been fired.

The company did not elaborate on why Mark Hellwig, former vice president of supply chain management, and Norman Sturdevant, former vice president and chief information officer, were terminated.

James Dulude, vice president of manufacturing, and Duncan Whitehead, vice president of research and development, have assumed Hellwig's duties. Paul Kelly, vice president of finance and chief financial officer, has taken over Sturdevant's responsibilities.

"I am pleased to report that we have reached agreement with our lenders on a waiver of those specified defaults and certain other changes to our loan documents," said Larry Liebenow, Quaker's president and chief executive officer. "With this waiver and amendment in place, we are no longer in default under the terms of our loan documents. We believe that this waiver and amendment provides the time and financing for the company to continue its restructuring initiatives."

Liebenow said the company is operating normally and is updating its "financial and operating plans with the assistance of the financial consulting firm we have retained."