Unique Fabricating Shares Jump After Forbearance Agreement Extension

Engineering and manufacturing company Unique Fabricating Inc UFAB announced the extension of the Forbearance Agreement with its lenders.
The extension is through February 28, 2022.
The agreement provides the company with continued access to credit facilities and sufficient liquidity for currently anticipated needs.
Unique Fab aims to finalize negotiations with the lenders to enter into an amendment and waiver to cure the defaults during the forbearance period.
“Our Lenders understand the well-documented and ongoing uncertainty in the Transportation Market regarding the timing of the full resolution of the chip shortage challenges,” said Doug Cain, President and Chief Executive Officer.
A forbearance agreement makes lenders refrain from enforcing their rights or seeking to collect payment of the company’s debt, or disposing of the collateral securing the debt.
Price action: UFAB shares are trading higher by 29.7% at $4.24 in premarket on last check Tuesday.