Exhibit 99.1
NAVISTAR’S FINANCE
SUBSIDIARY RECEIVES LOAN WAIVER
WARRENVILLE,
Ill. --November 20, 2006-- Navistar International Corporation
(NYSE:NAV) announced today that Navistar Financial Corporation
(NFC), its wholly owned finance subsidiary, has received a waiver
and consent from the participants in its $1.2 billion credit
agreement dated July 1, 2005.
This waiver
covers a default or event of default created by NFC’s and
Navistar’s failure to file their annual reports on Form 10-K
with the Securities and Exchange Commission by the filing
deadline.
“We are
continuing to evaluate strategies for enhancing the stability of
our capital structure and reducing overall interest expense,”
said Bill Caton, Navistar executive vice president and chief
financial officer. “This waiver from our lenders, which
extends through the end of current fiscal year ending October 31,
2007, is a sign of their confidence in our company and its
future.”
Caton noted
that 2006 has turned out to be an outstanding year for the trucking
industry.
“Our
company fully participated in the strong market and met internal
targets for cash flow generation,” Caton said. “Our
fiscal fourth quarter ended October 31, 2006, was one of the
strongest quarters ever for cash flow generation at
Navistar.”
Caton noted
that even after the significant investments in engine inventory of
approximately $150 million, as discussed on the company’s
September 13 conference call with investors, the preliminary year
end unaudited manufacturing cash and marketable securities was
approximately $1.2 billion, as anticipated. He added that it is the
company’s intention to use cash to pay down between $200
million and $400 million of debt by the end of the calendar
year.
Navistar is a
holding company whose wholly owned subsidiaries produce
International® brand commercial trucks, MaxxForce™ brand
mid-range diesel engines, IC brand school buses, and Workhorse
brand chassis for motor homes and step vans. It also is a
private-label designer and manufacturer of diesel engines for the
pickup truck, van and SUV markets. The company also provides truck
and diesel engine parts an
