been on a downtrend, but comin off a low of .15... now .24
THOMAS EQUIPMENT INC Quick Quote: THM 0.24 (+0.04)
Thomas Equipment, Inc. Announces Successful Refinancing of its Pneutech Inc. Subsidiaries; $15 Million Credit Facility Refinances Existing Credit Facility with Royal Bank of Canada and Provides Significantly Increased Financing Capacity 9/11/2006
CENTREVILLE, NEW BRUNSWICK, Sep 11, 2006 (Canada NewsWire via COMTEX News Network) -- Thomas Equipment, Inc. ("Thomas") (AMEX: THM) today announced that Pneutech, Inc. ("Pneutech"), its wholly owned subsidiary, has successfully refinanced its existing credit facility with a larger US$15 million credit facility provided by Greystone Business Credit II, LLC ("Greystone").
"We are pleased to work with JP and his team at Thomas," said Drew Neidorf, President of Greystone Business Credit II, LLC.
"We are excited by our partnership with Pneutech and feel confident we can support its financing needs as it executes on its opportunities," stated Joel Flig, Executive Vice President of Greystone Business Credit II, LLC.
On September 6, 2006, Pneutech Inc., and its wholly-owned subsidiaries Rousseau Controls Inc. and Hydramen Fluid Power Limited, initiated a court-supervised restructuring to facilitate a refinancing of its credit facilities with the Royal Bank of Canada. Pneutech obtained an order under the Canadian Companies' Creditors Arrangement Act (the "Order") in a hearing before the Quebec Superior Court of Justice, which maintains jurisdiction over Pneutech.
Pursuant to the Order, Pneutech received authorization to enter into a debtor in possession financing arrangement with Greystone to immediately replace Royal Bank of Canada as Pneutech's principal lender.
The new credit facilities provide Pneutech with increased financing to fund ongoing operations while Pneutech implements its restructuring and will continue after Pneutech emerges from these proceedings.
The credit facility with Greystone includes a revolving line of credit in the maximum amount of $15,000,000, which also includes term loans of up to $1,158,000. The loans bear interest at a rate of 3%, plus the prime interest rate. The facility will expire in 3 years, subject to earlier termination under certain circumstances. As additional consideration for the facility, Thomas Equipment, Inc. will issue a warrant to Greystone to purchase 1,000,000 shares of common stock at a price of $.50 per share.
"We are extremely disappointed with the Royal Bank of Canada and are currently assessing all legal claims related to their conduct from the original expiration of the credit facility through the date of refinancing with Greystone on September 8th, 2006," stated David Marks, Chairman of Thomas Equipment, Inc. "We were delighted to close this financing with Greystone so we can rapidly proceed through our corporate restructuring."
An 8-K will be filed with the Securities and Exchange Commission relating to these matters.
-------------------- jordan Posts: 5812 | From: st paul,mn | Registered: Feb 2004
| IP: Logged |