Barber-Greene Co. said it is negotiating with lenders to restructure the long-term debt of both its U.S. and English operations to avoid technical default on lending agreements next year.
In announcing its second consecutive profitable quarter, the Aurora-based company disclosed that its auditors will issue a qualified opinion as to the ability of both operations to continue as going concerns.
The manufacturer of road-construction machinery posted net earnings of $422,000, or 18 cents a share, in its fiscal fourth quarter, ended Aug. 31; a year earlier, it had a net loss of $10.8 million. Sales dipped to $28 million from $28.1 million.
Patrick J. Regan, vice president of finance, said Barber-Greene, which extensively restructured operations in the last year, cannot meet its large debt obligations without further financial support from lenders. As of Aug. 31, its debt outstanding totaled $49.3 million.
Earlier this year, the company`s domestic lenders agreed to extend a credit agreement that was to expire last June.
In an effort to cut costs, Barber-Greene has closed manufacturing plants in Aurora and Elgin and moved its English operations to smaller, leased facilities. The company continues to operate plants in De Kalb, Ill., and in Milwaukee and Mequon, Wis.
For fiscal 1985, Barber-Greene`s net loss narrowed to $3.1 million from $23 million a year earlier. Sales fell 11 percent, to $102.2 million from $114.7 million.
Until reporting earnings of $2.1 million, or 94 cents a share, in its fiscal third quarter, the company hadn`t posted a profit since the fourth quarter of 1981.
