In its first significant actions since taking the helm of Advanced Marketing Services in April, the new management team has signed a new lending agreement. The five-year deal, with Wells Fargo Foothill, provides AMS with a $60-million credit facility that replaces a $45-million agreement the company had with other lenders.
Bruce Myers, AMS's new chief financial officer, said the agreement resolves AMS's tight liquidity situation under the old lending agreement. The new agreement will also make it unnecessary for AMS to seek monthly forbearances required under the prior loan agreement. The forbearances were necessary because the company has been in violation of certain agreements with its banks.