SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 1, 2002
Commission File No. 333-72305
ADVANCED GLASSFIBER YARNS LLC
(Exact Name of Registrant as Specified in Charter)
Delaware 333-72305 58-2407014
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
AGY CAPITAL CORP.
(Exact Name of Registrant as Specified in Charter)
Delaware 333-72305-01 57-1072917
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
2558 Wagener Road,
Aiken, South Carolina 29801
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (803) 643-1501
Item 5. Other Events.
On October 1, 2002, Advanced Glassfiber Yarns LLC (the "Company")
announced that it had entered into an amendment and forbearance agreement (the
"Agreement") with its senior secured lenders under the Company's senior secured
revolving credit and term loan facility. A copy of the press release is attached
hereto as Exhibit 99.1.
Under the Agreement, the Company's senior lenders agreed, among other
things, to extend the current forbearance period from September 27, 2002 to
October 31, 2002 in connection with certain existing defaults under the credit
facility, including, without limitation, the Company's non-payment of a
scheduled principal payment due on September 30, 2002 in the amount of
approximately $5.9 million. The terms of the Agreement also provide, among other
things, that (i) all borrowings under the credit facility will accrue interest
at a base rate plus the current applicable margin, (ii) outstanding loans under
the credit facility will be subject to a borrowing cap of $35 million and (iii)
the Company will retain the services of a restructuring officer and/or
consultant within a specified time period. A copy of the Agreement is attached
hereto as Exhibit 10.20, and is incorporated herein by reference.
On October 7, 2002, the Company engaged Marc L. Pfefferle and Gary
Bernhardy (both of Carl Marks Consulting Group LLC) as Chief Restructuring
Officer and Chief Operating Officer, respectively. A copy of the press release
announcing, among other things, the Company's retention of Marc L. Pfefferle and
Gary Bernhardy is attached hereto as Exhibit 99.2.
Item 7(c). Exhibits.
10.20 Sixth Amendment to Credit Agreement and Forbearance Agreement, dated as
of September 27, 2002, among Advanced Glassfiber Yarns LLC, AGY
Capital Corp., Lenders party thereto and Wachovia Bank, National
Association, in its capacity as Administrative Agent for the Lenders.
99.1 Press Release dated October 1, 2002 announcing an amendment to its
senior secured credit facility and including an update on the Company's
restructuring discussions.
99.2 Press Release dated October 10, 2002 announcing the Company's new
management.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: October 10, 2002
ADVANCED GLASSFIBER YARNS LLC
By: /s/ Catherine Cuisson
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Catherine Cuisson
Chief Financial Officer
(Principal Accounting Officer)
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: October 10, 2002
AGY CAPITAL CORP.
By: /s/ Catherine Cuisson
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Catherine Cuisson
Chief Financial Officer
(Principal Accounting Officer)
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