Kasper ASL Ltd signed an amended agreement with the lenders of its revolving-credit facility that will waive certain financial covenants and all existing defaults.

In September, the women's-apparel company said it wouldn't make its semi-annual interest payment of $7.2m to holders of its 13 per cent senior notes. The company had also said it wasn't in compliance with financial covenants under its credit facility with a group led by Chase Manhattan Bank.

Yesterday, Kasper said it is in talks with an ad hoc committee of its noteholders to reach a restructuring that will allow the company to meet its obligations and enhance its short-term and long-term ability to pursue strategic plans.