Subsequent Events

9 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

An auction of the assets held for sale for the Alliance location took place on July 25, 2018. See Note 10, Assets Held for Sale and Disposal, for further information.

On August 8, 2018, the Company entered into a new asset-based Credit Agreement ("Credit Agreement") with a new lender. The new Credit Agreement matures in August 6, 2021 and is comprised of a senior secured revolving credit facility of a maximum borrowing amount of $30,000. The Credit Agreement also has an accordion feature, which allows the Company to increase by up to $10,000 upon consent of the existing lenders or upon additional lenders join to the Credit Agreement. The terms of the Credit Facility contain both a lock box arrangement and subjective acceleration clause. The amounts borrowed under the Credit Agreement will be used to repay the indebtedness of the Company (including amounts outstanding under the Company's existing credit agreement as of the date of the new Credit Agreement), for working capital purposes, for general corporate purposes and to pay fees and expenses associated with this transaction. In connection with entering into new Credit Agreement, the Company terminated its interest rate swap with its prior lender.

The Credit Agreement contains affirmative and negative covenants and events of defaults customary for a transaction of this type. As set forth in the Credit Agreement, the Company is required to maintain a fixed charge coverage ratio of 1.1:1.0 any time the availability is equal to or less than 12.5% of the revolving commitment.

Amounts borrowed under the Credit Agreement are secured by substantially all the assets of the Company and its U.S. subsidiaries and a pledge of 66.67% of the stock of its first-tier non-U.S. subsidiaries. Borrowings will bear interest at the lender's established domestic rate or LIBOR, plus the applicable margin as set forth in the Credit Agreement.