TRM Corp. Gets LoanExtension
PORTLAND, Ore. - (03/23/06) Financially ailing ATM giantTRM Corp. announced Wednesday its lenders group, led by Bank ofAmerica, has agreed to a 90-day forbearance on its debt, which iscurrently in noncompliance with various credit provisions. As partof the forbearance agreement, filed with the Securities andExchange Commission, TRM will supply the lenders with monthlyfinancial reports; limit the amount of foreign loans and lines ofcredit the company has; restrict the company incurring certaindebtor liens; and limit capital expenditures and distributions tono more than $3.5 million. TRM, which acquired eFunds fleetof 14,200 ATMs last year to become one of the largest independentATM operators. About 6,000 of those machines were part of the CO-OPNetwork until last month when the credit union-owned system cut off5,000 of the ATMs, adding to the companys financial woes.Last week TRM replaced its CEO and announced it will delay thefiling of its fourth quarter and fiscal 2005 financial reportindefinitely and expects to report an operating and net loss forboth periods.