According to a US Securities and Exchange Commission (SEC) filing lodged last Wednesday, the Derby Cycle Corporation has entered into an amendment to its credit agreement with its senior lenders whereby they will waive a breach of the Consolidated Adjusted EBITDA covenant for the quarter ended December 31, 2000 in return for Derby selling certain non-core assets of the Company and to use the proceeds of any such sales to pay down its borrowings under the credit facility.
There are no details of which assets have to be sold off. The most money would be realised by selling the highly-profitable Gazelle bike company of the Netherlands.
Gary Matthews, the former CEO of Derby, told BicycleBusiness last year that Sturmey Archer was sold because, as a component manufacturer, it was non-core to a bicycle company.
Thanks to the sale of the land beneath the factories of Raleigh and Sturmey Archer, Derbys assets are now mainly its brands.
Derbys assets include:
RALEIGH INDUSTRIES LIMITED
THE DERBY CYCLE CORPORATION LIMITED
DERBY HOLDING (DEUTSCHLAND) GMBH
KONINKLIJKE GAZELLE BV
RALEIGH INDUSTRIES OF CANADA LIMITED
RALEIGH EUROPE B.V.
ENGLEBERT WIENER BIKE PARTS GMBH
DERBY HOLDING LIMITED
RALEIGH FAHRRADER GMBH
DERBY CYCLE WERKE GMBH
RALEIGH INTERNATIONAL LIMITED
CURRAGH FINANCE COMPANY
RALEIGH IRELAND LIMITED
DERBY HOLDING BV
Derby is bankrolled by:
Dresdner Bank AG, New York and Grand Cayman branch; HSBC Bank plc; KBC Bank (Nederland) NV; Lloyds TSB Bank Plc; Oldenburgische Landesbank AG; Scotiabank Europe plc; the Bank of Nova Scotia; Chase Manhattan Bank; the Bank of Scotland; the Bank of Ireland; the Industrial Bank of Japan, the Sumitomo Bank; ABN AMRO Bank N.V., BHF Bank AG, BNP Paribas, and Deutsche Bank London AG.