US doughnut chain Krispy Kreme has been given a bit more breathing space as its lenders agreed to extend the date by which it has to file its financial statements to avoid defaulting on a credit facility.
The beleaguered company said it now has until 11 April 2005 to deliver financial statements for the quarter ended 31 October 2004.
Krispy Kreme also said it is currently negotiating with a new lending group to obtain new credit facilities, which it would use to repay its current credit facility and for general corporate purposes. However, the company said “there can be no assurance that such new credit facilities can be obtained”.
To read a recent feature article about Krispy Kreme’s fall from grace, click here.