Holders of the Company's senior debt have granted a waiver of compliance with certain financial covenants until June 30, 2002 to provide adequate time for the refinancing.
"Cash flow from operations has exceeded our projections throughout 2001, and for each reporting period in 2001, we have significantly reduced our debt and improved our cost structure," commented Daniel K. Frierson, chairman and chief executive officer.
"We expect to reduce debt an additional $16 million in the fourth quarter, bringing the total reduction this year to approximately $42 million. Cash flow from operations and $4 million from the sale of real estate will generate the funds for the fourth quarter debt reduction. We believe we can improve our financial flexibility and better control our cost of financing by deferring the sale and leaseback and acting now to refinance our senior credit agreement."