Gerber Gets Relief From Lenders
Gerber Scientific Inc., parent company of Gerber Technology, has reached an agreement with its lenders to amend certain stipulations within its credit agreement as well as extend credit to the company through August 15, 2003.
The company technically defaulted on its credit agreement when it took a $12 million charge during its fourth quarter ending April 30, 2002, over inventory write-downs and said that it would likely restate its earnings for the prior year. That news contributed to a decline in its stock prices, prompting several shareholders to file classaction lawsuits against the company.
“We are pleased with the positive outcome of our negotiations with the company’s bank group,” said Marc T. Giles, president and chief executive officer. “We believe the company’s existing cash balances, anticipated cash flows and borrowings against this credit facility will be sufficient to meet its operating requirements.”
Gerber Scientific also recently announced that it had filed an extension with the Securities and Exchange Commission through August 13, 2002, to file its Annual Report on Form 10-K for the company’s fiscal year ending this past April 30.
The company said that the extension would provide it with additional time to file the report and to complete its previously announced independent review of its financial statements from January 1, 1998 through April 30, 2002.
Gerber Technology, which supplies the apparel industry with cutting-room equipment, software and other resources, has recently seen several key executives depart from its Los Angeles office. Regional sales manager Warren Hartenstine left to join an East Coast consulting firm and senior sales executive Malcolm Gullish left to join rival firm Tukatech. —Robert McAllister
