Cleaning & Restoration Breaking News

The Dixie Group extends its Credit Agreement Waiver

The Dixie Group wants to refinance its senior credit agreement and defer its plans to sell and leaseback its North Georgia distribution center.

CHATTANOOGA, Tenn. -- Carpet and rug manufacturer The Dixie Group, Inc. (Nasdaq/NM:DXYN) plans to refinance its senior credit agreement and defer its plans to sell and leaseback its North Georgia distribution center.

"Cash flow from operations has exceeded our projections throughout 2001, and for each reporting period in 2001, we have significantly reduced our debt and improved our cost structure," said company chairman and CEO Daniel K. Frierson. "We expect to reduce debt an additional $16 million in the fourth quarter, bringing the total reduction this year to approximately $42 million."

Holders of Dixie's senior debt have granted a waiver of compliance with certain financial covenants until June 30, 2002, to provide adequate time for the refinancing.

According to Frierson, "Cash flow from operations and $4 million from the sale of real estate will generate the funds for the fourth quarter debt reduction. We believe we can improve our financial flexibility and better control our cost of financing by deferring the sale and leaseback and acting now to refinance our senior credit agreement." The Dixie Group (www.thedixiegroup.com) is a leading carpet and rug manufacturer and supplier to higher-end residential and commercial customers serviced by Masland Carpets and Fabrica International. Dixie's Candlewick Yarns serves specialty carpet yarn customers.

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.

Podcasts

Yes, it's only February now - several weeks or months before the thaw depending on where you live - and hopefully this winter has been a profitable one for your business during the historical slow season. But now's also the time to start planning for the busy season - spring - so that you can hit the ground running. In this episode of The Hitman Advertising Show, John Braun shares tips and tricks on how to make this spring your most profitable yet.
More Podcasts

ICS Cleaning Specialist Magazine

CoverImage

2015 March

The March ICS issue features content on cleaning services, green chemistry, encapsulation, terrazzo floors, educating clients and new products.

Table Of Contents Subscribe

Janitorial Work

In addition to residential and commercial carpet cleaning, do you do any janitorial work on the side?
View Results Poll Archive

THE ICS STORE

FinalCover.gif
The Carpet Cleaner's Book of Unlimited Success! (ebook)

Don’t worry about the recession or about your competition.  Now you can be the owner of over 400 ways for carpet cleaning professionals to make more money and get more jobs!

More Products

ICS DIRECTORY AND BUYING GUIDE

Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view

STAY CONNECTED

facebook_40.png twitter_40px.png youtube_40px.png

TRUCKMOUNT EQUIPMENT AND ACCESSORIES GUIDE

Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view