Has until Sunday to raise funds

Reports from the U.S say that Briggs & Stratton has this week been granted a four day waiver to find extra money to avoid a bankruptcy filing.

They now have until Sunday July 19th according to documents filed with the U.S. Securities and Exchange Commission.

Wednesday July 15th was the original date Briggs & Stratton had been given as an extension, in order to pay $6.7 million in interest.

Bloomberg Law wrote this week that the company said in a filing that ".'s continuing talks with creditors but failed to reached an agreement with an ad hoc group, and could end up filing for bankruptcy protection with a debtor-in-possession loan and stalking horse bidder in place."

The Milwaukee Journal Sentinel meanwhile said, "The company warned in the SEC filing that there can be no assurance that it will be able to reach an agreement, which would result in a bankruptcy filing."

The local paper went on to say, that Reorg, a financial research firm, reported that Briggs planned to file for Chapter 11 and that its filing would include a $550 million bid from KPS Capital Partners, a private equity firm, for the company’s assets.

Under Chapter 11, a company and its creditors work out a reorganisation plan that enables the business to continue to operate.

The Milwaukee Journal Sentinel in their detailed article also referenced Tom Hayes, an analyst with Northcoast Research, who said the reprieve of only a few days for Briggs to raise money could suggest that the company is working on a pre-packaged bankruptcy filing.

The paper writes, "If Briggs was close to an agreement with its creditors or the sale of assets, Hayes said, the banks would not have set the Sunday deadline."

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