Fedders Announces Agreement With Holders
of Senior Notes
and Senior Lender
CONTACT:
Robert Laurent, Jr.
(908) 604-8686
investorrelations@fedders.com
LIBERTY
CORNER, New Jersey -- September 14, 2005 --
Fedders Corporation (NYSE: FJC) (the "Company"),
a leading global manufacturer of air treatment
products, including air conditioners, furnaces,
air cleaners, dehumidifiers and humidifiers,
announced today that it has completed an agreement
with holders representing more than a majority
in principal amount of Fedders North America's
$155 million principal amount of 9 7/8% Senior
Notes due 2014 (the "Senior Notes")
for a waiver of the existing event of default
under the Senior Notes. The event of default
results from the Company's failure to timely
file its Form 10-K for the year ended December
31, 2004 and to timely file its subsequent quarterly
reports, as previously announced. The Company
has also completed an agreement with its senior
lender for a waiver of the default under its
agreement with the senior lender, also related
to the failure to timely file the Form 10-K
and subsequent quarterly reports. The agreement
with the holders of the Senior Notes modifies
certain provisions of the indenture pursuant
to which the Senior Notes were issued to, among
other things, include the Company in the indenture
covenants. Fedders North America paid all accrued
interest due on the Senior Notes on September
14, 2005.
In
a presentation to the holders of the Senior
Notes held on July 27, 2005, the Company disclosed,
under the terms of a confidentiality agreement
expiring today, that it has offered for sale
all of the capital stock of Melcor, its thermal
management subsidiary, and an industrial facility
and 182 acres of development property in Walkersville,
Maryland. The Company currently expects minimum
cash proceeds from the two transactions to total
in excess of $30 million. An auction of the
facility and property in Maryland will take
place on November 1, 2005.
This
news release includes forward-looking statements
that are covered under the "Safe-Harbor"
clause of the Private Securities Litigation
Reform Act of 1995. Such statements are based
upon current expectations and assumptions. Actual
results could differ materially from those currently
anticipated as a result of known and unknown
risks and uncertainties including, but not limited
to, weather and economic, political, market
and industry conditions and reliance on key
customers. Such factors are described in Fedders'
SEC filings, including its most recently filed
annual report on Form 10-K. The company disclaims
any obligation to update any forward-looking
statements to incorporate developments occurring
after release of announcement. Visit the Fedders
investor information website at www.fedders.com
to access additional information on Fedders.
###
BUY 
OWNERS CENTRAL 
