Tuesday April 16, 9:00 am Eastern Time
Press Release
SOURCE: XeTel Corporation
XeTel Announces Fulfillment of Credit Obligations
AUSTIN, Texas--(BUSINESS WIRE)--April 16, 2002--XeTel Corporation (Nasdaq:XTEL - news), a comprehensive electronics manufacturing and engineering solutions provider, disclosed successful resolutions to previously announced financial obligations. A new credit facility for receivables has been established with Silicon Valley Bank. The new credit facility allows XeTel to factor certain eligible receivables and provide short-term capital. In addition, the previous asset based facility with Tyco/CIT has been completely eliminated.
Concerning these activities, Angelo DeCaro, President and CEO commented, ``I am very pleased that we were able to completely eliminate our debt facility with Tyco/CIT without any default conditions. Our commitment towards the company's long term financial health remains our number one priority.''
Commenting on the new credit facility, Greg Wilemon, Senior Vice President and CFO, stated, ``I look forward to a long term relationship with Silicon Valley Bank. This new credit facility and relationship enhances our efforts towards future growth.''
Charles Reeves of Alvarez and Marsal assisted XeTel in establishing this new facility.
XeTel also announced today that all late property taxes due to Travis County were paid completely as of April 12, 2002, eliminating the default that existed on February 1, 2002. Mr. DeCaro stated, ``While this was a difficult process for us, I am pleased that we were able to eliminate this liability. This would not have been possible without the cooperation and assistance of the Travis County Attorney's office.'' |
