The firm announced the execution of the seventh amending agreement to its Credit Agreement providing for certain further changes to the terms of its Credit Facilities maturing in 2012.
The changes include a waiver of certain covenants for the quarters ended December 31, 2008 and March 31, 2009 and the alignment of thresholds of the same covenants for the second, third and fourth quarters of 2009 to the Corporation's 2009 operating plan. The amendment also provides for certain other restrictions and compliance requirements on the Corporation. The Corporation will be posting the amending agreement on SEDAR in accordance with applicable continuous disclosure requirements.
The execution of the amending agreement allows the Corporation's auditors to finalize the financial statements for the year ended December 31, 2008. Consequently, the Corporation will publish its financial results and audited consolidated financial statements and notes on April 6, 2009 before markets open.
"We are pleased with the continuing support of our lenders," said Marc Bertrand, President and CEO of MEGA Brands. "With this agreement, we can now focus on the continued implementation of our Value Enhancement Plan and the ramp-up of our 2009 product line."
As at December 31st, 2008, the Corporation held cash and cash equivalents of $49.4 million and its liquidity as at April 1, 2009 was substantially at the same level.