1
EXHIBIT 10.7
ACME GROUP
FOURTH AMENDMENT TO CREDIT AGREEMENT
Xxxxxx Trust and Savings Bank National City Bank
Chicago, Illinois Cleveland, Ohio
NBD Bank General Electric Capital Corporation
Chicago, Illinois Chicago, Illinois
Mercantile Bank of St. Louis
National Association
St. Louis, Missouri
Ladies and Gentlemen:
Reference is hereby made to that certain Credit Agreement dated as of
August 11, 1994 between the undersigned, Acme Steel Company, a Delaware
corporation ("Acme Steel"), Acme Packaging Corporation, a Delaware corporation
("Acme Packaging"), Alpha Tube Corporation, a Delaware corporation ("Alpha
Tube"), and Universal Tool & Stamping Company, Inc., an Indiana corporation
("Universal Tool") (Acme Steel, Acme Packaging, Alpha Tube and Universal Tool
are being hereinafter referred to collectively as the "Borrowers" and
individually as a "Borrower") and you (the "Lenders") as amended by that
certain First Amendment to Credit Agreement dated as of May 21, 1995, that
certain Second Amendment to Credit Agreement effective as of August 8, 1995 and
that certain Third Amendment to Credit Agreement dated as of April 5, 1996
(said Credit Agreement as so amended being referred to herein as the "Credit
Agreement"). All capitalized terms used herein without definition shall have
the same meanings herein as such terms have in the Credit Agreement.
The Borrowers have requested that the Lenders amend Section 7.6 of the
Credit Agreement, and the Lenders are willing to do so under the terms and
conditions set forth in this Amendment.
1. AMENDMENT.
Upon the satisfaction of the conditions set forth in Section 2 below,
Section 7.6 of the Credit Agreement shall be amended (effective as of April 1,
1997) and as so amended shall be restated in its entirety to read as follows:
2
"Section 7.6. Current Ratio. The Acme Group will at all
times maintain a Consolidated Current Ratio of not less than
1.25 to 1.0."
2. CONDITIONS PRECEDENT.
Upon the execution and delivery of this Amendment by the Borrowers and
the Lenders, this Amendment shall become effective as of April 1, 1997.
3. REPRESENTATIONS.
In order to induce the Lenders to execute and deliver this Amendment,
the Borrowers hereby represent to the Lenders that as of the date hereof, the
representations and warranties set forth in Section 5 of the Credit Agreement
are and shall be and remain true and correct (except that the representations
contained in Section 5.6 shall be deemed to refer to the most recent financial
statements of the Company delivered to the Lenders) and the Borrowers are in
full compliance with all of the terms and conditions of the Credit Agreement
and no Default or Event of Default has occurred and is continuing under the
Credit Agreement or shall result after giving effect to this Amendment.
4. MISCELLANEOUS.
(a) Except as specifically amended herein, the Credit Agreement
shall continue in full force and effect in accordance with its original terms.
Reference to this specific Amendment need not be made in the Credit Agreement,
or any other instrument or document executed in connection therewith, or in any
certificate, letter or communication issued or made pursuant to or with respect
to the Credit Agreement, any reference in any of such items to the Credit
Agreement being sufficient to refer to the Credit Agreement as amended hereby.
(b) The Borrowers agree to pay on demand all costs and expenses of
or incurred by the Agent in connection with the negotiation, preparation,
execution and delivery of this Amendment, including the fees and expenses of
counsel for the Agent.
(c) This Amendment may be executed in any number of counterparts,
and by the different parties on different counterpart signature pages, all of
which taken together shall constitute one and the same agreement. Any of the
parties hereto may execute this Amendment by signing any such counterpart and
each of such counterparts shall for all purposes be deemed to be an original.
This Amendment shall be governed by the internal laws of the State of Illinois.
-2-
3
Dated as of this 30th day of April, 1997 (but effective as of April 1, 1997).
ACME STEEL COMPANY
By
Its
-------------------------------
ACME PACKAGING CORPORATION
By
Its
-------------------------------
ALPHA TUBE CORPORATION
By
Its
-------------------------------
UNIVERSAL TOOL & STAMPING COMPANY, INC.
By
Its
-------------------------------
ACME METALS INCORPORATED
By
Its
-------------------------------
-3-
4
Accepted and agreed to as of the date and year last above written.
XXXXXX TRUST AND SAVINGS BANK
By
Its Vice President
NBD BANK
By
Its
-------------------------------
MERCANTILE BANK OF ST. LOUIS
NATIONAL ASSOCIATION
By
Its
-------------------------------
NATIONAL CITY BANK
By
Its
-------------------------------
GENERAL ELECTRIC CAPITAL CORPORATION
By
Its
-------------------------------
-4-
