Lender Waiver and Extension of Credit Facility for Hain Celestial Will Last Until May
28 Feb 2017 --- Organics and natural products company Hain Celestial has announced it has received a waiver and extension of certain obligations under its unsecured credit facility from its lenders giving it until late May to report financial information.
This relates to the delivery of certain financial information under the credit facility including the Company's audited financial statements for its fiscal year 2016 as well as the financial statements for the first and second quarters of fiscal year 2017.
This will allow the Company to be compliant with its reporting obligations while it works to complete the filing of its Annual Report on Form 10-K for its fiscal year ended June 30, 2016 as well as its Quarterly Reports on Form 10-Q for the periods ended September 30, 2016 and December 31, 2016.
Earlier this month, Hain Celestial was in hot water because it failed to timely file its Quarterly Report on Form 10-Q for the quarter ended December 31, 2016 with the US Securities and Exchange Commission (SEC).
The company received a letter from Nasdaq Listing Qualifications Staff saying it did not satisfy Nasdaq Listing Rule 5250(c)(1), which requires issuers to timely file periodic reports with the SEC.
Hain Celestial had been granted an extension to February 27, 2017 to file its periodic reports with the SEC and previously said it fully intended to “take all steps necessary to regain compliance with the Rule.”
According to Hain Celestial, as of December 31, 2016 there was US$790 million in borrowings under the credit facility, and the company had US$157 million in cash from its worldwide operations.
“We are pleased to continue to receive the support of our bank group led by Bank of America Merrill Lynch and Wells Fargo in securing this waiver and extension as we move toward a conclusion in our reporting process,” said Irwin D. Simon, founder, president and CEO of Hain Celestial.
“We appreciate the continued confidence of the bank group in the Company, as we have a solid financial platform with operating flexibility including working and acquisition capital to support our strategic growth initiatives.”
