CPI Aerostructures Announces Restructuring of Debt Facilities
PR NEWSWIRE - June 05, 2002 07:00
EDGEWOOD, N.Y., Jun 5, 2002 /PRNewswire-FirstCall via COMTEX/ -- CPI Aerostructures, Inc. (Amex: CVU) announced today that it and its senior and subordinated lenders had reached agreement regarding the terms of a restructuring of its debt facilities, subject to the execution of definitive agreements to put them into effect.
Under the new terms, one tranche of the senior bank loans, in a principal amount of $2,682,000, will be amortized at an amount beginning at $50,000 per month, increasing to $100,000 during the term, with a final payment of the balance due on June 30, 2003. A second tranche, for $734,000, the amount remaining from an equipment lease originally provided to CPI's Kolar subsidiary, will be amortized at $20,000 per month, with a final payment on June 30, 2003. The subordinated note issued in connection with the Kolar acquisition will mature ninety days after the maturity of the bank loans but not later than June 30, 2007. Until then, it will continue to accrue interest, which will be paid at maturity together with the principal amount.
Terms of the existing mortgage for the Kolar buildings will remain in effect until the last two properties are sold. The sale of these buildings is expected to yield enough to extinguish the $280,000 mortgage debt, with any remaining proceeds to be applied against the first tranche of the term loans.
"This restructuring will enable CPI to continue the growth trend that it has established over the past four years," stated CPI's President, Edward J. Fred. "Both the banks and the subordinated creditor have been extremely cooperative with the company, and have continued to work with us to get CPI on a solid financial footing. It is because of relationships like these that we look at the future of the company with great optimism," concluded Mr. Fred.
Founded in 1980, CPI Aerostructures, Inc. is a sub-assembly manufacturer servicing the commercial and military sector of the aircraft industry. |
