Horizon secures reprieve from lenders extending life another quarter

FINANCIALLY troubled Horizon Lines has announced another reprieve from deadly default with a new agreement with its lenders to amend its credit facility, reports American Shipper.

America`s biggest Jones Act box carrier said the "amendment relaxes compliance under the credit facility`s financial covenants for the second quarter, and will preserve access to liquidity under a revolving loan and facilitate Horizon`s ability to move forward with a previously announced refinancing effort."


Horizon vice president and CFO Michael Avaras said this "will provide additional financial covenant flexibility as we work with our banks and our convertible note holders towards a comprehensive refinancing, which we announced earlier this month."