Earlier this year, the company received a notice of default from Fifth Third Bank of Huntington, which, along with several other banks, has provided the company with a revolving credit facility and term loan.
While the company has made all of its required principal and interest payments to the banks, Champion failed to meet minimum earnings before interest, taxes, depreciation and amortization requirements spelled out in the debt covenants.
In response to the default notification, the company retained Timothy Boates of RAS Management Advisors LLC to serve as its chief restructuring officer.
In May, following Boates' hiring, the company negotiated a forbearance agreement with Fifth Third Bank to delay action on the debt default until after Sept. 30.
The delay was designed give the company more time to shore up its balance sheet and address its debt.
According to the company's most recent earnings report, it has already paid off nearly 61 percent of the debt generated by the Herald-Dispatch acquisition.
It currently has about $36.5 million in interest-bearing debt left on its balance sheet.
Contact writer Jared Hunt at busin...@dailymail.com or 304-348-4836.