NexCen Brands Provides Business Update

QSR magazine:

NexCen Brands, Inc., today announced an update on recent company activities.

NexCen Brands has entered into a letter agreement with its lender, BTMU Capital Corporation (BTMUCC), which provides the Company with near-term access to certain additional cash from its lockbox accounts and limited forbearance from certain alleged defaults under its bank borrowing facility. During the forbearance period, the Company intends to continue its discussions with BTMUCC, focused on developing a long-term solution for the Company’s liquidity issues.

The letter agreement provides for the following modifications:

* The Company will be permitted to receive certain cash distributions from its lock-box accounts on a monthly, rather than quarterly, basis, following delivery of required reports.

* The Company’s subsidiaries that are party to the bank borrowing facility may distribute certain cash to the Company to support operating activities in the ordinary course, including previously restricted cash that will be released from certain lock-box accounts.

* The Company has agreed to provide BTMUCC with monthly, rather than quarterly, reports of the Company’s operations and cash flow and additional weekly or bi-weekly status reports regarding cash flows, cost reductions, potential sales of one or more of its businesses and other business matters.

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