Decorator Industries Announces Loan Modification
October 06 2009 - 5:15PM
PR Newswire (US)
PEMBROKE PINE, Fla., Oct. 6 /PRNewswire-FirstCall/ -- 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."
STATEMENTS CONTAINED IN THIS RELEASE THAT ARE NOT HISTORICAL FACTS
ARE FORWARD-LOOKING STATEMENTS THAT COULD DIFFER MATERIALLY FROM
ACTUAL RESULTS. PRIMARY FACTORS THAT COULD CAUSE ACTUAL RESULTS TO
MATERIALLY DIFFER FROM THOSE IN THE FORWARD-LOOKING STATEMENTS ARE
THE LEVEL OF DEMAND FOR RECREATIONAL VEHICLES, MANUFACTURED HOUSING
AND HOTEL/MOTEL ACCOMMODATIONS, THE GENERAL ECONOMIC CONDITIONS,
THE COMPANY'S ABILITY TO RETAIN OR REPLACE ITS LINE-OF-CREDIT,
INTEREST RATE FLUCTUATIONS, THE AVAILABILITY OF CONSUMER CREDIT,
FUEL PRICES, COMPETITIVE PRODUCTS AND PRICING PRESSURES WITHIN THE
COMPANY'S MARKETS, THE COMPANY'S ABILITY TO CONTAIN ITS
MANUFACTURING COSTS AND EXPENSES, AND OTHER FACTORS. DECORATOR
INDUSTRIES, INC., FOUNDED IN 1953, DESIGNS MANUFACTURES AND SELLS
INTERIOR FURNISHING PRODUCTS, PRINCIPALLY DRAPERIES, CURTAINS,
SHADES, BLINDS, VALANCE BOARDS, BEDSPREADS, COMFORTERS, PILLOWS,
CUSHIONS AND TRAILER TENTS. DECORATOR IS A LEADING SUPPLIER TO THE
MANUFACTURED HOUSING AND RECREATIONAL VEHICLE MARKETS AND IS A
GROWING SUPPLIER TO THE LODGING INDUSTRY. (DIIG) DATASOURCE:
Decorator Industries, Inc. CONTACT: William Johnson, President
+1-954-436-8909 Web Site: http://www.decoratorindustries.com/
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