Empire Industries provides update on its Senior Credit Facilities
WINNIPEG, Manitoba, July 15, 2020 (GLOBE NEWSWIRE) — Empire Industries Ltd. (TSX-V: EIL) (“Empire”, “EIL” or the “Company”) provides an update today on the status of its senior credit facilities. As reported in the Company’s May 29, 2020 news release, with the consent of the Company’s senior lender, the due date for a principal payment of USD $4.9 million was deferred until July 15, 2020. The Company will not make this principal payment today, which constitutes an event of default under the senior credit facilities. However, the Company’s senior lender continues to be supportive of the Company, and has not made a demand for repayment of the credit facilities. The Company anticipates that it will not be in compliance with the aging accounts payables covenant contained in the senior credit facilities when the covenant is tested on July 31, 2020 and anticipates its senior lender will provide a waiver of the breach at that time. The Company remains in active discussion with its senior lender to restructure the credit facilities including the extension of the maturity dates and the relaxation of all financial covenants contained in the credit facilities, which the Company expects to finalize sometime prior to September 30, 2020.
About Empire Industries Ltd.Empire focuses on designing, supplying, and installing iconic media-based attractions and ride systems for the global theme park industry. Empire also uses these same turn-key integration services for special projects such as large optical telescopes and enclosures. Empire also has commenced an initiative to leverage its world class flying theater and attraction development capability on a co-venture ownership basis. Empire was selected as a 2020 TSX Venture 50 company. The 2020 TSX Venture 50 is a ranking of top performers on the TSX Venture Exchange over the past year. The ranking is comprised of 10 companies from each of 5 industry sectors, with Empire being selected in the Diversified Industry category. Selection was based on three equally weighted criteria; share price, trading and market capitalization. Empire’s common shares are listed on the TSX Venture Exchange under the symbol EIL.For more information about the Company, visit empind.com or contact:
This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Empire’s business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as ‘‘plans’’, ‘‘expects’’ or ‘‘does not expect’’, ‘‘budget’’, “booked”, ‘‘scheduled’’, “positions”, ‘‘estimates’’, “forecasts’’, ‘‘intends’’, ‘‘anticipates’’, “believes” or variations of such words and phrases or state that certain actions, events or results ‘‘may’’, “may be”, ‘‘could’’, “should”, ‘‘would’’, ‘‘might’’ or ‘‘will’’, ‘‘occur’’ or ‘‘be achieved’’. Such statements include statements with respect to: (i) the expectation that the Company’s senior lender will extend the maturity dates and relax the covenants with respect to the credit facilities; and (ii) the expectation that the Company’s senior lender will waive the breach of aging accounts payable covenant. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although Empire believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Actual results could differ materially from those anticipated in these forward-looking statements as a result of prevailing economic conditions, and other factors, many of which are beyond the control of Empire. The forward-looking statements contained in this news release represent Empire’s expectations as of the date hereof, and are subject to change after such date. Empire disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations.Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.