Physical music distributor Handleman Company negotiated some financial breathing room this week, instead of facing the default gauntlet.
The company renegotiated its recovery loan package downward, while preserving enough liquidity to keep the lights on.
According to details shared Thursday, the company reduced its financial loans from $223 million to $163 million, based on revised projections and commitments. “The amended credit facility will help ensure that we have sufficient liquidity to operate our business as we continue to take action to address the rapid and dramatic change under way in the music industry,” explained Albert A. Koch, president and chief executive of the company.
Handleman posted sharp earnings drops during its most recent, fiscal third quarter.
Story by news analyst Alexandra Osorio.