Ruby Tuesda, a chain restaurant operator, said it has entered into a waiver with lenders on its four-year revolving credit agreement.
Lenders have granted a limited waiver relating to the covenant requiring a consolidated fixed charge coverage ratio. As of Nov. 29, the company was not in compliance with the covenant. Ruby Tuesday said negotiations to amend the credit are continuing.
The waiver is in effect until a default or breach occurs, lenders exercise remedies, or until Jan. 31. It restricts the company’s ability to make certain acquisitions and investments and reduces borrowing capacity from $50 million to $16.1 million.
By Sara Howard