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Title: |
Forbearance Agreement |
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Entities: |
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Date: |
2000 |
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Size: |
Preview shows 6KB of 19KB total |
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Price: |
$37 |
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ID: |
#1526161 |
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<DESCRIPTION>EXHIBIT 4.4
<TEXT>
<PAGE>
FORBEARANCE AGREEMENT
This Forbearance Agreement (this "Agreement") is entered into as of
________, 2000, by and among Packaging Resources Group, Inc. ("Group") and
Packaging Resources Incorporated ("PRI"), and other signatories hereto
(collectively, the "Consenting Holders").
RECITALS:
WHEREAS, the Consenting Holders hold or are advisors to entities which
hold certain 11 5/8% Senior Notes due May 1, 2003 (the "PRI Notes"), issued by
PRI on or about September 23, 1996, in exchange for certain 11 5/8% Senior Notes
due 2003 issued on or about May 17, 1996, pursuant to that certain Indenture as
of May 17, 1996, by and between PRI and LaSalle National Bank (as amended,
restated, supplemented and otherwise modified from time to time, the "PRI
Indenture") and PRI and the Trustee are parties certain other ancillary
documents related thereto (collectively with the PRI Indenture, the "Indenture
Documents"); and
WHEREAS, Banc One (the "Trustee") is successor trustee to LaSalle
National Bank under the Indenture; and
WHEREAS, Group owns all of the common stock of PRI; and
WHEREAS, Group has issued certain Secured Notes due 2003 (the "Group
Notes") pursuant to that certain Indenture dated as of June 30, 1993, amended
and restated as of September 24, 1996, by and between Group and Harris Trust and
Savings Bank (the "Group Trustee") (as further amended, restated, supplemented
and otherwise modified from time to time, the "Group Indenture"); and
WHEREAS, certain Defaults have occurred, are continuing and are
anticipated to mature into Events of Default (as defined in the PRI Indenture)
and other defaults are anticipated to occur and continue and mature into events
of default under the Group Indenture; and
WHEREAS, the Consenting Holders are willing to forbear from enforcing
their rights that arise because of the Existing Defaults or the Anticipated
Defaults for a limited period of time, provided that PRI and Group comply with
the terms of this Agreement;
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:
SECTION 1. DEFINITIONS
1.1 All capitalized terms used herein and not otherwise defined shall
have the meanings assigned to such terms in the PRI Indenture.
1.2 The following terms used in this Agreement shall have the meanings
set forth below:
<PAGE>
"Anticipated Defaults" means any Group Default that occurs as a result
of Group's anticipated failure to pay interest on the Group Notes due and
payable on May 31, 2000.
"Bank Default" means a Default or Event of Default under the Loan
Documents, as each such terms is defined in the Credit Agreement.
"Credit Agreement" means that certain Credit Agreement dated as of May
17, 1996, by and among, PRI, LaSalle National Bank, as agent and lender, and the
other lender named therein, as amended, restated, supplemented or otherwise
modified.
"Existing Defaults" means the Defaults that have occurred as a result
of PRI's failure to pay interest on the PRI Notes otherwise due and payable on
May 1, 2000, and any resulting Events of Default.
"Forbearance Default" means (a) the occurrence of any Default or Event
of Default other than the Existing Defaults; (b) the occurrence of a Bank
Default other than a Bank Default which is the subject of a valid and binding
forbearance agreement in form and substance satisfactory to each of the
Consenting Holders; (c) the occurrence of a Group Default other than an
Anticipated Default or a Group Default which is the subject of a valid and
binding forbearance agreement in form and substance satisfactory to each of the
Consenting Holders; (d) the failure of PRI or Group to comply with any term,
condition or covenant set forth in this Agreement, (e) any representation made
by PRI or Group, under or in connection with this Agreement shall prove to be
false as of the date when made; (f) the filing of any petition (voluntary or
involuntary) under the insolvency or bankruptcy laws of the United States or any
state with respect to PRI, its affiliates, or any of its or their subsidiaries,
or Group; (g) there shall have occurred any event or events that, in the
reasonable judgment of such Consenting Holder, shall have resulted or may result
in a material adverse change in the business, condition (financial or other),
income, operations or prospects of PRI or the Group or materially impair the
contemplated benefits of a sale of all or substantially all of the assets of PRI
or Group or a majority of the equity interests in PRI or Group (a "Transaction")
to the Consenting Holders; (h) there shall have been instituted or pending any
action, proceeding, claim or counterclaim by any government or governmental,
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