Company: Global Railway Industries Ltd.
Stock Symbol: GBI
Listing: Toronto Stock Exchange
Web Site: www.globalrailway.com
LONDON, ON, Nov. 12 /CNW/ - Global Railway Industries Ltd., - (GBI:TSX): Global Railway Industries Ltd., www.globalrailway.com, ("Global" or the "Company"), a leading North American provider of railway products and services, today reports that Management and the Company's Lenders have agreed to terms for amending the Company's term and operating facilities.
Terry McManaman Chairman, President and CEO of Global commented, "Global's management team has successfully negotiated amended credit agreements with its Lenders which addresses our banking covenant breaches and defers two scheduled long-term-debt repayments until the expiry date of the term credit facility in 2012."
The operating credit facility has been renewed to the next annual review scheduled for March 31, 2010. The amendments to the Company's credit facility require the Company to enter into a binding agreement for the sale of one or more subsidiaries before January 31, 2010, with a transaction close date of no later than February 28, 2010; or alternatively obtain a commitment by January 31, 2010 for a new facility of not less than $5,000,000, for a combination of equity and subordinated debt, which is to include a minimum equity injection of $2,500,000, to be completed by March 31, 2010.
Brian McMullan, Chief Financial Officer of Global said, "Global, through its Special Committee, has been pursuing opportunities in respect of both of the courses of action mandated in the amendment to the credit agreement and anticipates, given the current status of those opportunities, compliance with the lenders' requirements within the specified timelines."
"I would like to publicly thank our Lenders for their continued support and Fausto Levy, President of Global's subsidiary CAD Railway Industries, who played a key role in the negotiations", concluded McManaman.
THIS NEWS RELEASE MAY CONTAIN FORWARD LOOKING INFORMATION. ACTUAL FUTURE RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED. THE RISKS, UNCERTAINTIES AND OTHER FACTORS, BOTH KNOWN AND UNKNOWN, THAT COULD INFLUENCE ACTUAL RESULTS MAY BE SUBSTANTIAL AND INCLUDE THOSE DESCRIBED IN DOCUMENTS FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED ANNUAL REPORT AND ANNUAL INFORMATION FORM. ACCORDINGLY, NO ASSURANCES CAN BE GIVEN THAT ANY OF THE EVENTS ANTICIPATED BY THE FORWARD-LOOKING STATEMENTS WILL TRANSPIRE OR OCCUR, OR IF ANY OF THEM DO SO, WHAT BENEFITS THE COMPANY WILL DERIVE THEREFROM.
About Global Railway Industries: Global Railway Industries Ltd. is a diversified rail product company serving the railway industry in North America. Global Railway is a public company whose shares are listed for trading on the Toronto Stock Exchange (TSX) under the symbol "GBI". For more information: visit www.globalrailway.com.
SOURCE Chinook Tyee Industry Limited
For further information: For further information: Company Contact: Terry McManaman, Chairman, President & CEO, Tel: (585) 419-9720, E-mail: firstname.lastname@example.org; Brian McMullan, CFO, Tel: (585) 419-9720, E-mail: email@example.com