Question to anyone who thinks they know the answer: when MTW sells Enodis Ice, why couldn't they take the cash to JP Morgan and amend their credit agreement in a proactive fashion, just to clear the water up? They want to pay off the revolver anyway, why not get something more out of it. This would avoid a potentially difficult and more costly situation at a later date.
that would fall under the terms of basically starting a new loan and to do so it require another payment of a large sum of money they do not have. I do believe to be in a mediation on the terms of the current loan they will have to have already demonstrated financial dispare and plead there case as to a resolution. Then the bank would hold a meeting with thier lending board and determine thier conditions that would be reqiured and MTWs viability to pay the debt down if allowed to restructure. Even during this process there would be added fees and raised interest. Which a fraction of a percent could add a tremendous amount of money to the already 2.5 billion dollar loan.
I think MTW is just waiting for the last resort before they have to play this card. But I would believe that this is a subject of daily meetings at the Head Quarters. Boy it would be great to be a fly on the wall, that is one place I bet the air is tense.