SARASOTA, Fla.—Pinnacle Holdings Inc. said its lenders extended the deadline on its credit facility until Feb. 6, 2002, but the company raised serious doubts it will be able to meet payment requirements without having to sell assets or raise more capital.
Pinnacle will have to try to renegotiate portions of its senior credit facility to waive its current noncompliance with certain covenants under the credit facility as of September 30, 2001, and to establish new financial covenants for the future.
However, Pinnacle said there can be no assurance that it will be able to negotiate a suitable amendment to its senior credit facility, or raise additional funding given the current difficult economic conditions.
In this event, Pinnacle will still default on its credit facility.
