Online education company Edmentum Inc. is out of compliance with its loan agreement and is looking for a waiver from lenders to keep it from defaulting, Dow Jones Daily Bankruptcy Review reported yesterday. According to Moody's Investor Services, the closely held company is currently operating under a forbearance agreement with its lenders and didn't meet a requirement to keep its leverage ratio under a certain level. If Edmentum doesn't obtain a waiver for the leverage requirement, it could potentially be in default on its loan. Edmentum didn't meet expectations this year, Moody's said, adding that the company has a "weak liquidity profile, small scale, high leverage, modest coverage of interest expense, and balance sheet debt that is well in excess of revenue."
