September 1, 2009 / 6:23 PM / in 8 years

UPDATE 1-Allen-Vanguard gets nod to defer interest payment

* Says lenders agree to defer interest payment to Sept. 14

* Lenders waive compliance on some provisions in agreement

Sept 1 (Reuters) - Canada’s Allen-Vanguard Corp VRS.TO said it signed an agreement with its lenders to defer interest payment and waive compliance with certain provisions under its existing credit agreement.

The Ottawa-based company, which has already cut jobs and closed offices to battle mounting debt, said the agreement defers the interest payment payable on Aug. 31 to Sept. 14.

Allen-Vanguard, which specializes in jamming systems that prevent detonation of remote-controlled bombs, has struggled since its C$600 million acquisition of rival Med-Eng systems in 2007 that burdened it with a large debt load and was forced to defer repayments as demand for its products slowed. Shares of the company were trading flat at 10 Canadian cents Tuesday afternoon on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Deepak Kannan)

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