Unique Fabricating, Inc. Announces Extension of Forbearance Agreement through February 28, 2022

AUBURN HILLS, MI / ACCESSWIRE / June 14, 2021 / Unique Fabricating, Inc. (NYSE American:UFAB), a leader in engineering and manufacturing multi-material foam, rubber, and plastic components utilized in noise, vibration, and harshness management and air/water sealing applications for the transportation, appliance, medical, and consumer markets, today announced the extension of our Forbearance Agreement with our Lenders through February 28, 2022.

"We have been working collaboratively with our lenders and we remain appreciative of their continued support," said Doug Cain, President and Chief Executive Officer. "Our Lenders understand the well-documented and ongoing uncertainty in the Transportation Market regarding the timing of the full resolution of the chip shortage challenges. This agreement provides the Company continued access to our credit facilities and we believe sufficient liquidity for our currently anticipated needs. We believe the extension provides adequate time for resolution of the uncertainty regarding the industry's recovery timing in the second half of 2021 and into 2022. During the forbearance period, we can finalize negotiations with the Lenders to enter into an amendment and waiver to cure the defaults. Third party forecasts continue to highlight an overall market recovery beginning in the second half of 2022 and extending through 2023 as customer demand at this time remains high and inventory levels remain at historic lows. We also anticipate that the above factors will have positive impacts for our Appliance Market business."

As previously disclosed, we entered into a Forbearance Agreement with our lenders under which, during a period commencing on April 9, 2021 and through and including June 15, 2021, the Company has had continued access to our credit facilities, subject to the terms and conditions for making a revolving credit advance, including availability, and the Lenders agreed, subject to the terms of the Forbearance Agreement, to forbear from enforcing their rights or seeking to collect payment of the Company's debt or disposing of the collateral securing the debt. This Forbearance Agreement is now extended through and including February 28, 2022. The Forbearance Agreement, as extended, also contains requirements for Minimum Liquidity and Minimum Consolidated EBITDA for each of the monthly periods through and including February 28, 2022.