July 9, 2002 — Measurement Specialties Inc., a Fairfield, N.J., designer and manufacturer of MEMS sensors and sensor-based consumer products, announced it has negotiated a forbearance agreement with lenders.
Under the agreement, the lenders will not take action as a result of defaults on loans until Nov. 1, 2002, according to a company release. Lenders are issuing additional credit and are allowing the company to apply proceeds from asset sales towards its revolving credit line instead of loan payments. The agreement pledges certain assets in favor of the lenders and puts undisclosed restrictions on the actions of the company.
Chief Executive Frank Guidone said the move will give the company the time and liquidity necessary to restructure, but cautioned that this was only the first step. The company’s annual report is due to be filed July 15. It announced its restructuring plan June 19.