SARASOTA, Fla.—Pinnacle Holdings Inc. said the previously announced expiration of the forbearance agreement that it and its subsidiaries, including Pinnacle Towers Inc., entered into Nov. 16, 2001, has been renewed until May 10, unless certain events, including the failure to obtain an extension by April 19 of a financing commitment from prospective lenders, forces it to be terminated sooner.
During this extension period the lenders have agreed not to exercise remedies available to them as a result of Pinnacle’s non-compliance with certain covenants under its senior credit facility.
Pinnacle said if it fails to satisfy the conditions under the forbearance agreement, the holders of Pinnacle Holdings’ convertible notes and 10-percent senior discount notes due 2008, or the lenders under Pinnacle’s senior credit facility, could declare a default and demand immediate repayment, or seek a judgment to seize Pinnacle and Pinnacle Towers’ assets, including stock in the direct and indirect subsidiaries.