O'Sullivan Industries, Inc. Extends Forbearance Agreement, Continues Financial Restructuring Negotiations

Furniture World News

O'Sullivan Industries, Inc., a leading manufacturer and distributor of office, household and home organization RTA furniture, announced that it is continuing negotiations with its senior secured and other creditors regarding a consensual financial restructuring of its balance sheet. In connection with these negotiations, O'Sullivan has entered into an amendment to extend the forbearance agreement with the controlling holders of its 10.63% Senior Secured Notes due 2008. Commenting on the Forbearance Extension, Bob Parker, President and CEO, stated "the extension of the Forbearance Period reflects the continued positive progress that is being made in the ongoing negotiations with the senior secured creditors." The Forbearance Agreement will now expire on September 30, 2005, unless extended. With no binding obligation, the parties have agreed to continue to work together in good faith to consider a further extension of the forbearance period.