Continuing to express “significant doubt” about its ability to carry on, Finlay Jewelry is launching a formal process whereby parties may indicate interest in its business or assets.
A statement noted that Finlay has previously received unsolicited interest from a number of financial and strategic investors and is interested in exploring these and any other that develop. It retained Alvarez & Marsal as financial advisor in February, 2009 and appointed David Coles of A&M as its Chief Restructuring Officer. A&M is managing the process, reporting to Finlay’s Board of Directors.
Parties interested in receiving further information may contact A&M at the following email addresses and telephone numbers: David Coles at DColes@Alvarezandmarsal, and LSax@Alvarezandmarsal.com, (617) 510 – 2277.
The company statement added: “There can be no assurance that any business combination or other transaction will be effected or, if effected, what the timing and terms of any such transaction would be. In addition, the Company does not intend to provide further public comment on this subject until its Board of Directors deems it appropriate to do so.”
A 10-Q filed by the company yesterday also noted: “We experienced a significant operating loss in 2008, we have incurred an operating loss in the first quarter of 2009, and we are expected to incur operating losses for the remainder of 2009. [We] are in default of certain covenants under the Revolving Credit Agreement. These uncertainties raise substantial doubt about our ability to continue as a going concern.”
In addition, the company had missed a semi-annual interest payment, due June 1, and was unlikely to make it during the 30-day grace period, it said.
The company has also modified its agreement with a majority of its vendors have payments deferred until August 2009.
“In May 2009, a significant number of these vendors entered into an amendment to the agreement which calls for a delay of 60 days, such that the deferred payment schedule now extends through October 2009,” it said. “We have paid the first two scheduled installments and three installment payments are remaining through October 2009.”Follow JCK on Instagram: @jckmagazine
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