Oct 8 2009
Decorator Industries, Inc. (AMEX: DII), announces that on September 30, 2009 the Company negotiated a modification to its loan agreement with Wachovia Bank (a Wells Fargo company).
The Modification Agreement extends the maturity date of the Loan Agreement to December 31, 2010, changes the interest rate to Prime Rate plus two percent and limits the outstanding balance to the lesser of $4 million or seventy-five percent of the appraised value of six of the Company's properties which are now unencumbered. Decorator expects the real estate appraisals to fully support the $4 million of availability.
Wachovia Bank will secure repayment of the loan by collateralizing this real estate. Should any of this real estate be sold, the net proceeds will pay down the Loan and reduce the available loan limit dollar for dollar.
In addition, the Loan Modification allows Decorator to establish an additional credit line with an asset-based lender using all of Decorator's accounts receivable and inventory as collateral. This should provide as much as $2 million of additional working capital availability.
William Johnson, President, stated:
"I am pleased that we negotiated the best agreement available in such a difficult economic environment. I am confident that the modification provides the financial resources to successfully weather this economic storm. Now we must refocus our efforts on the long term profitability of Decorator Industries."
Source: https://www.decoratorindustries.com/