Cinram has announced that its first and second lien senior lenders have agreed to extend their waiver of certain financial covenants, consistent with previously granted and disclosed waivers. These waivers have been extended to May 30, 2012 but can be terminated under certain circumstances by the lenders on or after May 15, 2012.
The company also announced recently that it had received written notice from a non-core customer who has decided not to extend the fulfillment services currently provided by Cinram beyond the current term, which expires June 15, 2013. Cinram has provided distribution and related services to this customer since 2008. Revenues from this business for the year ended December 31, 2011 represented approximately 6% of the total consolidated revenues of Cinram International Inc.
Steve Brown, Cinram CEO, commented: “While we are disappointed with the decision by this customer to end our five-year relationship as their service provider of distribution services, we will nevertheless be working closely with them to ensure an orderly transition to a new provider of the services and ensuring that all affected employees and other stakeholders are given the absolute greatest consideration during this process.”
