From RB, an old PR explaining how Delmar got into that debt with the bank. The debt that's recently cleared. Just goes to show how Delmar backed up around the company. (KLHE was the previous name of ARET)
KLH completes financing
ENGLEWOOD, Colo.--Aug. 14, 1995--KLH Engineering Group Inc. announced that it
finalized its financing package on Aug. 11, 1995.
The terms of the agreement reached with Industrial State Bank and First State Bank of
Kansas City include the extension of a $1.5 million credit facility to KLH for a term of three
years. This facility will allow KLH to pay off First State Bank of Kansas City, and remove First
State Bank's objection to emergence from bankruptcy of Tomahawk Construction Co., a
wholly owned subsidiary of KLH.
In addition, Delmar A. Janovec, president and chairman of the board of KLH, purchased
Tomahawk's outstanding loan of approximately $3.2 million from Industrial State Bank.
Janovec will exchange the note for an additional equity position in KLH prior to the end of the
1995 fiscal year. This will reduce the outstanding obligations of KLH and provide a
substantial equity capital infusion to bring total stockholder equity in KLH to approximately $4
million, an increase of approximately 300%.
The completion of this financing package will allow Tomahawk to emerge from bankruptcy on
Aug. 28, 1995. Janovec stated: "We are excited to finally complete this restructuring. We will
now be able to devote our time to becoming more productive and improving our bottom line."
KLH Engineering Group Inc. is a full-service consulting, engineering and construction firm
based in Englewood, Colo. The company's common stock trades on the NASD OTC Bulletin
Board under the symbol "KLHE |
