Champion Industries Amends Credit Agreement

It provides for extensive covenant relief including higher leverage ratios, lower fixed charge coverage ratios, lower EBITDA thresholds, EBITDA definition modifications, a reinstitution of LIBOR borrowings and a reduction in minimum revolving loan availability thresholds.

Marshall T. Reynolds, Chairman of the Board and CEO of Champion, said, "It is critical in difficult economic times to work out appropriate solutions with your banking partners. This assures stability in the markets and allows a company reasonable flexibility to run its business. We have previously indicated we expect several more difficult quarters of market instability but believe this covenant package puts us in a position to work through these economic challenges."