Referenece EASY
It appears the "stand-still" period which ends end of this month didn't prove to be as positive as EASY was hoping for. They weren't able to get enough money from credit line or the credit line was cancelled.
Portion of EASY 10Q filed August 1998
As of June 30, 1998, the Company had approximately $0.1 million in
cash and cash equivalents and a $10.0 million revolving accounts receivable
line of credit. The line of credit expires on February 27, 1999 and is secured
by the assets of the Company. At June 30, 1998, the Company had $0.7 million
of borrowings outstanding under this line of credit and additional
availability of approximately $5 million. Principally due to the reserve
provisions recorded in the second quarter of 1998, the Company would not have
been in compliance with its tangible net worth bank covenant as of June 30,
1998 had the bank not waived such covenant. In conjunction with the waiver,
the line of credit was reduced to $6.0 million. The Company is currently
negotiating a revised covenant with the bank. As of June 30, 1998, the
Company's principal commitments consisted primarily of the above-mentioned
line of credit, secured equipment financings, trade payables to Primax, a note
payable to Logitech and a lease for its office facilities. The Company and
Primax are currently in negotiations with regard to the net balance of trade
payables due to Primax and a related payment plan. In conjunction with such
discussions, both parties agreed to a "stand-still" period extending through
early September 1998. To date, the Company has not invested in derivative
securities or any other financial instruments that involve a high level of
complexity or risk. The Company expects that, in the future, cash in excess of
current requirements will be invested in investment grade, interest-bearing
securities. |
