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Credit and Guaranty Agreement

 

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Title:

Credit and Guaranty Agreement

Entities:

First Union National Bank; Galey & Lord, Inc.; LaSalle Business Credit, Inc.; Morgan Stanley Senior Funding Inc.; Wachovia Bank, NA

Date:

2004

Size:

11KB total

Price:

$36

ID:

#395420

 

 

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SIXTH AMENDMENT AND CONSENT TO REVOLVING

CREDIT AND GUARANTY AGREEMENT

 

SIXTH AMENDMENT AND CONSENT, dated as of February 9, 2004 (the Amendment and Consent), to the REVOLVING CREDIT AND GUARANTY AGREEMENT, dated as of February 20, 2002, among GALEY & LORD, INC., a Delaware corporation (the Borrower), a debtor and debtor-in-possession under Chapter 11 of the Bankruptcy Code, the Guarantors named therein (the Guarantors), WACHOVIA BANK, NATIONAL ASSOCIATION (formerly known as First Union National Bank), a national banking corporation (Wachovia), each of the other financial institutions from time to time party thereto (together with Wachovia, the Banks) and WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent for the Banks (in such capacity, the Agent):

 

W I T N E S S E T H:

 

WHEREAS, the Borrower, the Guarantors, the Banks and the Agent are parties to that certain Revolving Credit and Guaranty Agreement, dated as of February 20, 2002 (as the same has been and may be further amended, modified or supplemented from time to time, the Credit Agreement); and

 

WHEREAS, the Borrower and the Guarantors have requested that from and after the (i) DIP Extension Effective Date (as hereinafter defined), the Banks agree to extend maturity of the Credit Agreement as set forth herein and (ii) Consent Effective Date (as hereinafter defined), the Banks consent to certain transactions as set forth herein, subject to and upon the terms and conditions set forth in this Amendment and Consent.

 

NOW, THEREFORE, the parties hereto hereby agree as follows:

 

1. As used herein, all terms that are defined in the Credit Agreement shall have the same meanings herein.

 

2. Consent. Notwithstanding anything to the contrary contained in the Credit Agreement or the other Loan Documents, the Banks hereby (a) consent to the inter-company payment of $1 million from Swift Textiles to Drummondville Services Inc. in exchange for the purchase of, and release of the liens of Congress Financial Corporation on, the 31 Drummondville looms in connection with the transactions described in the Summary of Drummondville Transaction attached hereto as Exhibit A (referred to herein as the Drummondville Restructuring), (b) consent to the restructuring of the foreign subsidiaries of the Borrower and the Guarantors as contemplated by the Debtors Motion for an Order Authorizing Restructuring of Certain Non-Debtor Foreign Subsidiaries and approved by order of the Bankruptcy Court entered on January 6, 2004, copies of which are attached hereto as Exhibit B (referred to herein as the Tax Restructuring), (c) agree to release any existing liens in favor of the Agent on stock of the Borrowers foreign subsidiaries necessary to effectuate the Tax

 


Restructuring, and (d) waive any Default or Event of Default that may arise under the Credit Agreement or any other Loan Documents as a result of the consummation of the Drummondville Restructuring or the Tax Restructuring. Schedule 3.05 of the Credit Agreement shall be deemed modified to reflect the Tax Restructuring.


 

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