Exhibit 99.2
WORLD HEADQUARTERS
0000 X. Xxxxx Xx.
Xxxxxx, XX 00000 XXX
Ph: 309-697-4400
FAX: 000-000-0000
[OBJECT OMITTED]
FOR FURTHER INFORMATION:
Xx Xxx
Chief Financial Officer
(000) 000-0000
xx.xxx@xxxxxxx.xxx
XXXX SIGNS AMENDMENT TO CREDIT AND FORBEARANCE AGREEMENTS
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August 30, 2002, Peoria, IL -- XXXX Industries, Inc. (Nasdaq: XXXX), a
global provider of infrastructure equipment for the telecommunications
industry, announced today that it has entered into an amendment to its
credit and forbearance agreements with its bank lenders. The amendment to
the credit agreement, among other things, modifies the definition of the
borrowing base to restrict the Company's access to $1,500,000 of borrowing
capacity and imposes certain additional information requirements on XXXX.
Under the amendment to the forbearance agreement, the bank lenders have
agreed to extend until October 31, 2002 the period during which they will
forbear from enforcing any remedies under the credit agreement arising from
XXXX'x breach of financial covenants contained in the credit agreement. If
these financial covenants and related provisions of the credit agreement
are not amended by October 31, 2002, and the bank lenders do not waive any
defaults by that date, the bank lenders will be able to exercise any and
all remedies they may have in the event of a default.
XXXX Industries, Inc. is a leading manufacturer and installer of
telecommunications infrastructure equipment for the wireless and fiber
optic industries. Its products are used in cellular, PCS, fiber optic
networks for the Internet, radio and television broadcast markets. The
company's products include towers, equipment enclosures, cabinets, poles
and antennae mounts, as well as design and construction services. XXXX has
manufacturing locations in Peoria, Ill.; Frankfort, Ind.; and Bessemer,
Ala., along with a sales office in Mexico City, Mexico.
Statements in this press release include "forward-looking statements"
within the meaning of the Securities Exchange Act of 1934, the Private
Securities Litigation Reform Act of 1995 and other related laws, and
include, but are not limited to, those statements relating to sales and
earning expectations, expected demand and other statements of outlook. The
actual results and effects could differ materially from those currently
anticipated in our forward-looking statements. Factors and risks that could
cause such differences include, but are not limited to: wireless and fiber
optic communications industry capital spending; the ability of our
customers to secure adequate financing; elections by customers to terminate
or delay previously placed orders; the effects of competition, particularly
on pricing and margins; our implementation of our growth objectives in
foreign markets; our indebtedness, which could restrict our operations,
making us more vulnerable to adverse economic conditions and making it more
difficult for us to implement our business strategy; our failure to enter
into an amendment to our Credit Agreement to waive or cure existing
defaults thereunder; our delisting from the Nasdaq National Market, our
possible transfer to the Nasdaq SmallCap Market; our Commonwealth of
Pennsylvania construction project staying on its currently anticipated
schedule; and regulatory changes affecting our industry. The cautionary
statement contained in Exhibit 99.1 to XXXX'x Form 10-K is incorporated
herein by reference. Our forward-looking statements are given as of the
date of this release and we are not undertaking any duty or obligation to
update these statements publicly as a result of new information, future
events or otherwise.
