Lenders agree to revise financing for Preston trucking

December 20, 1991|By John H. Gormley Jr.

Preston Corp. has reached agreement with its lenders on a restructuring of its loans and lines of credit.

William B. Potter, chairman and president of the Eastern Shore-based trucking company, said yesterday that the restructing was not an indication of financial distress or difficulty repaying its loans.

"We were current on everything," Mr. Potter said.

The company, which lost money in 1989 and 1990, has showed signs of recovery this year, despite a weak economy.

For the quarter that ended Sept. 30, Preston eked out a profit of 1 cent per share, marking the company's second straight quarter of profitablity. Through the first nine months of the year, the company registered a $1.2 million profit, compared with a loss of $18.4 million for the same period a year ago.

Mr. Potter said the restructuring included converting lines of revolving credit into $44 million in term loans from banks.

Also renegotiated was a line of revolving credit of up to $43 million and a $19 million loan from Allstate Insurance Co.

A statement from the company said the lenders, in exchange for liens on certain assets, agreed to "extend maturity dates, amend financial covenants and provide for renewal or replacement of letters of credit."

Mr. Potter said the agreement "will offer us the financial flexibility to continue our effort to provide the highest qualtity customer service."

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