Golden Books has ended discussions with its creditors that would have resulted in a standstill agreement preventing its noteholders from taking any action against the company until February, while also providing the publishing company with a new $45-million credit facility (News, Nov. 16).
According to a Golden chief administrative officer, Phil Galanes, the company is continuing to reorganize its debt obligations, and although there is no written standstill agreement, "Everyone is in effect standing still." Galanes said that with its cash flow improving with the holiday sales, Golden felt it no longer needed CIT's $45-million line of credit and is continuing to negotiate with Nation's Bank about maintaining its credit line with that institution.
