I pulled this from there 3qtr 10-k........
Do they still meet these requirements? I also heard they sold the building for $5 million? anyone have any positive news? also,,,why aren't they Pr'ing this Barney cd-rom title????
FINANCIAL COVENANTS. Borrower shall A) maintain tangible net worth
(meaning the excess of all assets, excluding any value for goodwill, trademarks,
patents, copyrights, organization expense, all amounts due from affiliates,
officers, directors, stockholders and affiliated entities, and other similar
intangible items, over its liabilities) of not less than $25,000,000 increasing
to $29,000,000 at 12/31/97; B) maintain a ratio of current assets to current
liabilities of not less than 3.0 to 1.0; C) maintain cash and cash equivalent
balances of not less than $11,000,000; D) maintain cash and cash equivalents
plus trade accounts receivable of not less than 20,000,000; E) maintain cash and
cash equivalent balances at Imperial Bank of not less than $4,000,000 and F)
beginning with the year end 1997, maintain a ratio of EBIDA (earnings before
interest, depreciation and amortization for the 12 months ended as of the date
of compliance testing) to debt service (total principal and interest due during
the following 12 month period from the date of compliance testing) of not less
than 1.25 to 1; all as computed and determined in accordance with generally
accepted accounting principles on a basis consistently maintained by Borrower.
Covenant compliance is to be tested on a quarterly basis with the exception of
C, D, and E which are to be tested on a monthly basis.
7TH LEVEL, INC.
CREDIT TERMS AND CONDITIONS DATED 9/6/96.
PAGE 2 OF 6
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At any point that cash and cash equivalent balances fall below $15,000,000,
Borrower shall cause at least 65% of the balances to be held either at Imperial
Bank or in investments purchased through Imperial Bank's Investment Department
or Imperial Trust Company. |
