Gehl Secures Financial Restructuring

Manitou said its U.S. subsidiary Gehl had passed a “milestone” in its financial restructuring by selling $36 million of existing finance contracts to a third party lender and at the same time, amending its credit facility, according to International Rental News.

The $36 million raised by the transaction has been used to repay in full Gehl’s existing securitization program, which amounted to $19.5 million, and to reduce to $20 million the principal amount outstanding under its revolving credit facility.

The amendment to the credit facility, meanwhile, means that all past defaults have been waived by the lenders and the maximum credit available has been reduced to $45 million. Manitou said the credit facility was intended to provide Gehl with enough liquidity for the near-term and give it time to reorganize the long-term financing sources for the company.