Company also implements plan to lower its operating costs.
Nur Macroprinters reports that its lender banks have given it waivers of defaults and the company's outstanding bank debt is currently not subject to acceleration. The three lender banks--Bank Hapoalim B.M., Bank Leumi Israel B.M., and Israel Discount Bank Ltd.--waived the defaults and agreed that Nur shall not be obligated to make principal repayments until January 1, 2006. The banks have also agreed to new financial covenants "that better suit the current business plan of Nur."
The company also reports that it is continuing discussions with several parties and its lender banks regarding a financial transaction that may involve an investment in, or strategic partnership with, Nur, as well as the restructuring of Nur's outstanding debt.
"By granting us the waiver and by postponing payments of principal until next year, the lender banks have enabled Nur to focus on running its business and on attempting to conclude the kind of financing plan that is needed to permit the company to grow in the future," says David Amir, Nur president and CEO.
In addition, Nur has implemented a plan to lower its operating costs by up to $1.5 million per quarter. The plan is designed to maintain its on-going operations while re-aligning some of the company's activities.
Nur had previously received notification from Inspire Investment Ltd. that the latter company had terminated the $10 million investment agreement in Nur. The agreement had been conditioned upon, among other factors, Inspire's completion of its due-diligence review.
As a result of this termination, Nur's previously announced restructuring agreement with its lender banks terminated, since the debt restructuring was conditioned upon the closing of the Inspire investment.
Nur's management is also actively considering alternative plans to address its immediate and long-term financing requirements, which may include seeking protection from creditors under Israeli bankruptcy laws, Nur reports. The company has been contacted by and begun discussions with several parties regarding an investment in or a strategic transaction to replace the recently terminated proposed investment by Inspire Investments, Nur reports. In addition, the company also has received a proposed offer from Dan Purjes, a major shareholder of Nur and a former chairman of the board, to make an investment in the company. Purjes has offered an investment of $1 million in the company and to follow this investment by attempting to raise an additional $9 million for the company
by the end of 2005.
Nur had initially announced the Inspire investment agreement in December 2004; it announced the agreement with its lender banks in March 2005. (Nur Macroprinters: www.nur.com)
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