USG Corp., one of the nation’s largest building products manufacturers, said today that it is postponing debt payments and selling a major subsidiary because of the declining construction industry.
The company said its major bank lenders have agreed to cooperate in the refinancing plan. In the interim, USG will defer payments of $105 million in principal due today to its senior lending banks. It will also not make interest payments on $40 million in loans from subordinated bondholders.
The company said it is postponing these payments in order to strengthen its cash position so that it can pay its trade and operating expenses during the financial restructuring.
It said it is also seeking an equity investor.