Exhibit 99.2
[LOGO - XXXX Industries, Inc.]
WORLD HEADQUARTERS
0000 X. Xxxxx Xx.
Xxxxxx, XX 00000 XXX
Ph: 000-000-0000
FAX: 000-000-0000
FOR FURTHER INFORMATION:
Xxxx Xxxxxxxxx
Treasurer
(000) 000-0000
xxxx.xxxxxxxxx@xxxxxxx.xxx
XXXX SIGNS AMENDMENT TO FORBEARANCE AGREEMENT
---------------------------------------------
June 4, 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 existing
forbearance agreement with the bank lenders under its credit agreement.
Under the amendment, the bank lenders have agreed to forbear from enforcing
any remedies they may have under the credit agreement until June 30, 2002
arising from XXXX'x breach of a covenant related to minimum EBITDA
(earnings before interest, taxes, depreciation and amortization). XXXX is
in negotiations with its bank lenders regarding an amendment to the credit
agreement that will revise the EBITDA covenant and other provisions of the
credit agreement and under which the bank lenders will waive this default.
If XXXX does not enter into an amendment to its credit agreement by June
30, 2002 and the forbearance agreement is not further extended, 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.; Bessemer, Ala.;
and 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 cure or waive existing
defaults thereunder; 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.
