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Document Preview Letter Agreement Re: Note Purchase Agreement |
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Title: |
Letter Agreement Re: Note Purchase Agreement |
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Entities: |
Corrpro Companies, Inc.; Prudential Insurance Co. of America; Joseph W. Rog |
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Date: |
2003 |
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Size: |
Preview shows 3KB of 23KB total |
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Price: |
$40 |
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ID: |
#252547 |
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October 31, 2003
Corrpro Companies, Inc.
1090 Enterprise Drive
Medina, Ohio 44256
Attention: Joseph W. Rog, CEO
Re: Note Purchase Agreement, dated as of January 21, 1998, between Corrpro
Companies, Inc. and The Prudential Insurance Company of America.
Ladies and Gentlemen:
Reference is made to (i) that certain Note Purchase Agreement, dated as
of January 21, 1998 (as amended from time to time, the "Note Agreement"),
between Corrpro Companies, Inc., an Ohio corporation (the "Company"), and The
Prudential Insurance Company of America ("Prudential"), pursuant to which the
Company issued and Prudential now holds the Company's Third Amended and Restated
Senior Notes due January 15, 2008 in an aggregate principal amount of
$25,352,573.00 (the "Notes"), and (ii) that certain Forbearance Agreement, dated
July 31, 2003 (as amended, the "Forbearance Agreement" and together with the
Note Agreement, the "Agreements") between the Company and Prudential.
Capitalized terms used herein and not otherwise defined herein shall have the
meanings assigned to such terms in the Agreements.
Consistent with the provisions of the Forbearance Agreement, the
Company, with the consent of the holders of the Notes, has entered into a letter
of intent governing a potential refinancing transaction. In connection with such
potential refinancing transaction, however, the Company is not in compliance
with the deadlines set forth in Section 1.2(v) of the Forbearance Agreement (the
"Milestone Defaults").
The Company has requested that Prudential agree to forbear from
exercising its rights and remedies under the Agreements arising as a result of
the occurrence and continuation of the Existing Events of Default and the
Milestone Defaults (collectively, the "Existing Defaults") and agree to certain
other changes to the Note Agreement, including to defer the date of certain
required payments of principal on the Notes, as more particularly set forth
herein. Subject to the terms and conditions hereof, and effective upon the
satisfaction of the conditions set forth herein, and provided that the Company
agrees to the modifications of the Agreements and the Notes set forth below,
Prudential is willing to agree to such request. Accordingly, and in accordance
with the provisions of paragraph 11C of the Note Agreement, the parties hereto
agree as follows:
AMENDMENTS TO FORBEARANCE AGREEMENT
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1. INTRODUCTORY PARAGRAPH. The first paragraph of the Forbearance Agreement
shall be amended by adding the following language after the number "$28,
285,714": ", and as of the Effective Date (as hereinafter defined), Prudential
shall hold the Company's Third Amended and Restated Senior Notes due January 15,
2008 in an aggregate principal amount of $25,352,573".
2. SECTION 1.1. Prudential hereby agrees that the Forbearance Period (the
expiration date of which is currently October 31, 2003) set forth in Section 1.1
of the Forbearance Agreement shall be extended until January 31, 2004.
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