Protection One Extends its debt agreement

SSN Staff  - 
Tuesday, June 1, 2004

TOPEKA, Kan. - Protection One, a commercial and residential security provider, has announced that it has reached an agreement with the Quadrangle Group to extend two standstill agreements in regard to the company’s debt status.

The original contracts required the company’s senior lenders and majority stockholders to refrain from exercising certain rights they may be entitled - such as debt collection.

The terms of the extension requires Quadrangle’s sister companies to continue to forbear from taking any enforcement and collection actions on any defaults until the end of May.

The company, previously owned by Westar Energy, was sold to Quadrangle in late December and continues discussing a potential restructuring of its debt with Quadrangle and other affiliated firms.

In the company’s annual report filed in March, it  mentioned that Protection One executives were considering filing Chapter 11 as a possible restructuring option.

Richard Ginsberg, president and chief executive officer of Protection One, commented in a prepapred statement that discussions with debt holders continue to be constructive.