Huntway Partners to Restructure Debt

Huntway Partners L.P., struggling after big losses last year and the termination of its chief financial officer, said it reached an agreement with its secured lenders to restructure $75.3 million of debts.

The agreement calls for Huntway, based in Valencia, to repay the debt in full over a 15-year period through Dec. 31, 2008, and it provides the lenders with warrants to buy common units of Huntway equal to 25% of the company’s outstanding common units as well as preference units. Huntway previously said it might file for bankruptcy reorganization or sell assets unless it could restructure its debts.

As part of the agreement, no distributions will be paid to any holders of the company’s common units or preference units until the lenders are paid in full. The agreement also provides for a $17.5-million letter of credit facility to Huntway, and a reduction in interest rates that Huntway estimates will lower interest expenses by $3 million annually.