NEW YORK (CNN/Money) - Battered doughnut maker Krispy Kreme said Tuesday that it has worked out an agreement with lenders allowing the company to defer loan payments until March 25, 2005.

The terms of Krispy Kreme's loans have been amended to provide limitations on the extension of credit and on the creation of loan guarantees, the company said in a statement. The company previously said it is currently unable to borrow funds under its credit facility.

Last week the company's shares rallied from recent lows after it announced that Stephen F. Cooper replaced former chief executive Scott A. Livengood, who also retired as chairman of the board and president.

Krispy Kreme (up $0.20 to $8.95, Research) shares were up 2.6 percent Tuesday in midday New York Stock Exchange trading.