Harnischfeger Industries Inc. has reached an agreement with lenders on $725 million of bank loans, the company said Wednesday.
The bank group, led by Chase Manhattan Corp., agreed to amend a $500 million credit facility and arrange a new $250 million term loan for the Milwaukee-based mining equipment company. The agreement includes new terms and financial covenants to the existing credit line.
The credit line had been set to mature in 2002. New terms were not disclosed.
Harnischfeger announced Dec. 15 that a major account had defaulted on its agreement to buy $300 million in mining machinery, and that fourth- quarter and yearend results would be below expectations.
The company is seeking damages against the buyer, Asia Pulp and Paper Co., a Singapore-based mining company. Harnischfeger reported net income fell in 1998 to $13.5 million, from $125 million a year earlier.