Georgia Gulf Gets Waiver To File 2006 Annual Report On Form 10-K By Extended Due Date
Georgia Gulf Corporation (NYSE: GGC) today announced that it will be unable to file its 2006 annual report on Form 10-K by the extended due date of March 16, 2007. Georgia Gulf expects that it will file the Form 10-K on or prior to March 30, 2007. While substantial portions of the 10-K have been completed, extensive work required for purchase accounting and discontinued operations disclosures relating to Georgia Gulf’s acquisition of Royal Group on October 3, 2006 delayed the consolidation and audit processes.
Georgia Gulf plans to host its fourth quarter earnings conference call shortly after filing its 2006 Form 10-K and expects to announce the date and time of the call several days in advance.
Senior Credit Facility Amendment and Waiver Received
On March 14, 2007, Georgia Gulf entered into a second amendment and waiver to its senior credit facility (the “Senior Credit Facility”) provided by a syndicate of banks and other financial institutions.
As previously announced, for the fourth quarter ended December 31, 2006, Georgia Gulf will record additional costs of sales associated with a step-up in the inventory value of Royal Group. As a result of this charge, Georgia Gulf may not be in compliance with its interest coverage ratio under its Senior Credit Facility, in which event it would be in default under the agreement on the date its compliance certificate for the quarter ended December 31, 2006 is due. Georgia Gulf obtained the waiver to avoid this potential default. The compliance certificate for the quarter ended December 31, 2006 will be due not later than March 30, 2007.
The Senior Credit Facility was amended to adjust the scheduled Consolidated EBITDA by adding to it certain interest expenses and non-cash charges that previously were not included in these scheduled numbers. The amendment also specifies Consolidated EBITDA for the third quarter of 2006, which had not been specified in the original agreement. In addition, the amendment permits sale-leaseback transactions for certain Canadian assets not to exceed US $125 million and permits sales transactions for certain Canadian assets not to exceed US $65 million.
The bank syndicate for the Senior Credit Facility is led by Bank of America, N.A., as administrative agent.
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