Western Digital Avoids Default

Times Staff and Wire Reports

Western Digital Corp. said Monday that it has staved off a default on its credit line by renegotiating the terms of its bank credit agreement.

The Irvine-based manufacturer of hard drives for computers had said earlier this month that an anticipated loss for its just-completed fourth quarter would result in a technical default of its credit line.

The company said Monday it now has $200 million available under its bank credit agreement and $50 million outstanding in the form of a term loan.

Company officials said that despite the anticipated loss, Western Digital expects to show more than $425 million in cash on its balance sheet for the fiscal year that ended Saturday.