AKRON (Feb. 6, 2003) — Goodyear is attempting to enhance its financial flexibility by modifying bank loan agreements, including covenants within those pacts, in meetings it's held with lenders.
The Akron-based tiremaker said the banks have granted the company waivers until March 7 to comply with covenants that require the firm to pay about $500 million to its pension funds in excess of federally mandated requirements. Under the waivers, Goodyear has access to about $1.1 billion in two revolving credit facilities. Goodyear said it had more than $600 million in cash on hand as of the end of January.
In a prepared statement, Robert J. Keegan, Goodyear president and CEO, said: “The successful completion of these actions, accompanied by steps we have taken to enhance our revenue, improve our cost structure, preserve cash and strengthen our balance sheet, should provide us the financial resources, including access to capital markets, to meet the ongoing needs of our business and drive our turnaround.”