AgriBioTech Out of Compliance With Terms of Bank America Loan
Las Vegas, Feb. 19 (Bloomberg) -- AgriBioTech Inc. wasn't in compliance with the terms of a $69.8 million loan from Bank America Business Credit on Dec. 31, according to a regulatory filing.
The bank waived the violation, and the turf and forage seed company subsequently borrowed more money under the revolving line of credit. The loan totaled $83 million as of Feb. 10, according to AgriBioTech's quarterly report filed today with the Securities and Exchange Commission.
The violation was in the debt service coverage covenant of the loan, the Las Vegas-based company said.
AgriBioTech lost $10.3 million, or 26 cents a share, in the quarter ended Dec. 31, compared with $1.4 million, or 5 cents, in the same period a year earlier. The company was expected to lose 6 cents, according to the average estimate of three analysts polled by First Call Corp.
15:21:17 02/19/1999
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