Lenders to Advance Huntway More Funds

Huntway Partners L. P. in Valencia said it reached an interim agreement with its bank and mortgage note holders in which the lenders have agreed to advance additional funds to Huntway while deferring principal and interest payments.

Last month Huntway fired its chief financial officer after uncovering “financial irregularities” in the concern’s books. Huntway said the investigation is continuing.

Huntway, a maker of liquid asphalt for use in road construction, also disclosed in December that it was in violation of a $41-million credit agreement with Bankers Trust New York Corp. The partnership also said it failed to make an interest payment due to holders of Huntway’s first mortgage notes and was in default under the first mortgage note indenture.

Huntway, which lost $1.9 million on revenue of $80 million for the nine months that ended Sept. 30, has been struggling because of rising prices for crude oil, a principal ingredient in asphalt.