Salton, Inc. has today announced that it has obtained a wrongful written notice of termination from APN Holding Company, Inc. concerning the two company’s merger agreement dated February 7, 2007.
According to Salton, APN Holdco has not acted in “good faith” for some time, with the company behind the George Foreman griller now intending to vigorously pursue its claims and remedies against APN Holdco, its affiliates and representatives.
“While we are disappointed with APN Holdco’s actions, our management and board is actively pursuing a number of operational and strategic options to improve our liquidity position and our financial performance,” said Salton CEO and CFO, William Lutz, in a statement today.
“In this regard, we have entered into an interim amendment to our senior credit facility which extends the repayment date on all of our outstanding overadvances to August 6, 2007, while we are actively engaged in discussions with our senior lender to secure a further extension and additional support.
“In addition, with the assistance of Leon Dreimann, our former chief executive officer, we continue to work closely with our suppliers to ensure that we can continue to provide our customers with high quality and innovative products,” Lutz said.
“We believe that our strong relationships with our customers and suppliers will allow us to implement our current business initiatives as we continue to explore strategic alternatives, which may include discussions with APN Holdco and other third parties.”