NexCen Grabs Extra Time From Lender
NEW YORK (Blue MauMau) - NexCen Brands, Inc. announced this morning that it has managed to stave off immediate bankruptcy proceedings after interest payment on a sizeable loan came due yesterday. NexCen, a franchisor of several well-known brands, in May declared that it had discovered the sizeable loan's unfavorable terms and realized it had insufficient funds to pay it. Its CEO warned that it faced a severe cash squeeze and had "substantial doubt" that the firm would remain in business.It would seek a solution to avoid bankruptcy.
The lender, BTMU Capital Corporation, has agreed to extend payment until August 8.
“We are gratified by the ongoing support of our lender as we work together to develop a long-term financing solution for NexCen,” stated Robert W. D’Loren, CEO of NexCen Brands. “Importantly, the progress we have made in working with our lender toward the restructuring of our credit facility enables us to continue implementing our operating plans for both our license and franchise businesses.”
NexCen announced that progress is being made towards a comprehensive restructure of its sizeable loan.
NexCen, a buyout firm, owns a number of franchise chains such as Great American Cookie, Pretzelmaker, The Athlete's Foot, and others. The firm may try to sell off some of its brands, such as Waverly Home Furnishings, to meet cash demands.
BTMU Capital Corporation did not respond to calls asking for confirmation and details.
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