Standstill Agreement

 

TIDMFCOM 
 
RNS Number : 8263H 
First Communications, Inc. 
01 March 2010 
 

 
 
 
 
 
                          First Communications, Inc. 
                    Standstill Agreement on Credit Facility 
 
Akron, OH, March 1, 2010 - First Communications, Inc. today provides the 
following update on the successful Standstill Agreement that has been put in 
place with its lender group on its credit facility. 
 
Standstill Agreement 
On August 21, 2009 the Company announced an amendment to its existing credit 
facility (the "Amendment") with a bank group lead by JPMorgan Chase Bank, N.A. 
(the "Lender Group") which amended certain financial and other covenants of the 
Company.  Under the Amendment, the Company was required to raise at least $10 
million of equity by January 31, 2010.  The credit facility has a 30 day cure 
period ending February 28, 2010 if such equity was not raised by such date. The 
Company has not raised such equity in the period. 
 
On February 26, 2010 the Company and the Lender Group entered into a Standstill 
Agreement which provides that the Lender Group may not exercise any of the 
remedies available under the credit facility with respect to the failure to 
raise such equity for a period ending no earlier than March 31, 2010. Subject to 
agreement with the Lender Group, the standstill period can be extended to no 
later than June 30, 2010.  The Company remains in compliance with all other 
covenants, including all the amended financial covenants contained in the 
Amendment as outlined in the August 21, 2009 announcement. The Company expects 
to meet its next financial covenant test due March 31, 2010. 
 
The Company's operating results continue to meet management's expectations and 
it expects to be able to announce its full year financials sometime over the 
next 2 months. The Company continues to pursue its strategic options in order to 
address its debt balance, which currently will mature on December 7, 2010 and 
will provide an update once it is in a position to do so. 
 
For Further Information: 
 
First Communications, Inc. 
Joe Morris                                             Tel: [phone] 
 
Collins Stewart Europe Limited 
Stewart Wallace                                    Tel: [phone] 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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