Questron Lenders Postpone Debt Payments; Distributor Seeks Equity, Debt Restructuring or Sale

John Wolz

Questron Technology Inc. announced it reached agreements with senior lenders and a majority of senior note holders to defer certain payment obligations until February 14, 2002.
Questron is working with an investment banker to explore such alternatives as equity investments, restructuring debt or sale of the company or assets.
The company “has received several indications of interest concerning possible transactions,” but does not have “any definitive proposals.”
One holder of a minority of the senior subordinated notes agreed to defer payment and could declare default. “Although there can be no assurance, the company believes it is unlikely that the minority note holder would declare such a default at this time and any such declaration would not affect the deferral otherwise granted to the company,” according to a company statement.
CEO Dominic Polimeni said he is “pleased” with the agreements with lenders and that “they remain supportive during these difficult and challenging economic times.” The agreements “afford the company additional time to evaluate the indications of interest that have been presented and to seek to enter into an investment, financing or sale transaction.” Web: questrontechnology.com �2001 FastenerNews.com