Shares of American Italian Pasta Co., the largest maker of dry pasta in North America, saw massive gains last week with prices rising 37% on Friday (16th December).

After Thursday’s closing bell, AIPC announced that it had received a waiver until 16th March for non-compliance with certain covenants of its bank credit agreement from its lending group. The company plans to evaluate options for refinancing the current bank facility, which expires on 2nd October 2006.

This reprieve pushed share prices up by US$2.16 to $7.99 in midday trading on the New York Stock Exchange. This positive sign was welcomed by shareholders who had witnessed stock plummet from a 52-week high in April of $30.01 to a low for the year of $5.65 in October.