CINCINNATI, Sept. 29 /PRNewswire-FirstCall/ -- Chiquita Brands International, Inc. today announced that it has begun the process of obtaining a temporary waiver from its lenders with respect to compliance with certain financial covenants contained in its Senior Credit Facility for the period ending Sept. 30, 2006. While Chiquita's fiscal third quarter has not yet been completed, the company is seeking the waiver at this time to provide additional flexibility in light of the current challenging market environment facing the company, as discussed in its press release of Sept. 25, 2006. The temporary waiver, if approved, will become effective upon receipt of consents from holders of a majority of the outstanding principal amount of the loans and commitments under the Senior Credit Facility, and will remain effective for the period provided in the approved waiver. The company will evaluate and seek a more permanent waiver or amendment, as appropriate, during the term of the temporary waiver.
About Chiquita Brands International
With annual revenues of more than $4 billion, Chiquita Brands International, Inc. is a leading international marketer and distributor of high-quality fresh and value-added food products -- from energy-rich bananas and other fruits to nutritious blends of convenient green salads. The company's products and services are designed to win the hearts and smiles of the world's consumers by helping them enjoy healthy fresh foods. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide. For more information, please visit our web site at http://www.chiquita.com/.
Business Risks
This press release contains certain statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Chiquita, including the impact of the 2006 conversion to a tariff-only banana import regime in the European Union; unusual weather conditions; industry and competitive conditions; financing; product recalls affecting the industry; the customary risks experienced by global food companies, such as the impact of product and commodity prices, food safety, currency exchange rate fluctuations, government regulations, labor relations, taxes, crop risks, political instability and terrorism; and the outcome of pending governmental investigations and claims involving the company.
Any forward-looking statements made in this press release speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and the company undertakes no obligation to update any such statements. Additional information on factors that could influence Chiquita's financial results is included in its SEC filings, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
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