CoolBrands has received a credit warning from JPMorgan Chase & Co, the administrative agent of two separate credit agreements, cautioning that it reserves the right to terminate credit agreements due to the Toronto-based frozen food manufacturer’s failure to meet earnings targets.
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“JP Morgan indicated that, while it is not terminating its commitment to lend at this time, it retains the right to do so for any reason as a result of defaults that continue to exist under the Credit Agreements,” CoolBrands said.
CoolBrands said that it remained committed to working with JPMorgan to resolve the situation, adding that it is examining various options, including the disposal of non-core assets.
“With the assistance of its financial advisors, Duff & Phelps LLC, the company continues to explore various strategic alternatives that may be available to it, such as the disposition of non-core assets, but there is no assurance that any particular transaction will be effected within any specific period of time, or at all,” the company said.
CoolBrands’ product portfolio includes Eskimo Pie, Godiva ice cream, Whole Fruit sorbet and Tropicana fruit bars.
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