LOD, Israel--June 30, 2005-- NUR Macroprinters Ltd., today reported that its lenders banks gave NUR waivers of defaults and the outstanding bank debt is currently not subject to acceleration. The three lender banks, Bank Hapoalim B.M., Bank Leumi Israel B.M. and Israel Discount Bank Ltd., waived their contractual rights related to NUR's non compliance with certain agreed upon financial covenants for all the periods ended March 31, 2005. The lender banks waived these defaults and agreed that NUR shall not be obligated to make principal repayments until January 1st, 2006. The banks have also agreed to new financial covenants that better suit the current business plan of NUR.
The Company also reported that it is continuing discussions with several parties and its lender banks regarding a financial transaction that contemplates an investment in, or strategic partnership with, NUR, and the restructuring of NUR's outstanding debt. There can be no assurance that any of these discussions will result in a completed transaction or transactions.
David Amir, President and CEO, said, "By granting us the waiver and by postponing payments of principal until next year, the lender banks have enabled NUR to focus on running its business and on attempting to conclude the kind of financing plan that is needed to permit the Company to grow in the future."
NUR today implemented a plan to lower its operating costs by up to $1.5 million per quarter. The plan is designed to maintain its on-going operations while re-aligning some of the Company's activities.
The independent accountants have not yet determined whether the financial statements for the year ended December 31, 2004 will be reported with no qualification or, instead, subject to a "going concern" qualification. NUR anticipates releasing its 2004 financial results and filing its Annual Report on Form 20-F following this determination by its independent accountants and the issuance of a final audit report.
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