Printer Friendly

ESSEX CORPORATION CONCLUDES DISCUSSIONS ON MODIFICATIONS TO BANK LOAN AGREEMENT

 ESSEX CORPORATION CONCLUDES DISCUSSIONS ON MODIFICATIONS
 TO BANK LOAN AGREEMENT
 COLUMBIA, Md., Feb. 25 /PRNewswire/ -- Essex Corporation (NASDAQ-NMS: ESEX) and Signet Bank have concluded discussions resulting in a decision by Signet to reset the Tangible Net Worth (TNW) loan covenant to a minimum of $2.5 million in exchange for a 2 percentage point increase in the interest rate and a reduction of the line to a maximum of $2.5 million. The company's bank debt at year-end Dec. 29, 1991, was $1.9 million, and its tangible net worth was approximately $2.85 million. The loan agreement will be continued through its May 1992 renewal date. Essex expects the agreement will be renewed under similar terms and conditions sufficient to provide necessary working capital for 1992.
 Company officials stated that current revenues are not adequate to cover the costs of its vigorous program to develop essential new products and services, such as its ImSyn products, causing the company's TNW to drop below the previous minimum. The company has initiated actions to raise public and private capital to be used to finance development and marketing of its new products and services and to improve its overall credit worthiness. Estimated 1991 revenues were $17 million, down from year-earlier levels of $24 million. Complete financial results for 1991 are expected to be released in late March.
 Essex Corporation recently announced the award of its patent for Sequential Image Synthesis (ImSyn). Products for use in medical and technical imaging are currently in development.
 Established in 1969, Essex Corporation is a publicly traded small business that provides quality professional services and products to the U.S. government and major industry members. Essex specializes in three distinct functional areas: Signal and Image Processors, Interactive Training and Human Error Containment.
 -0- 2/25/92
 /NOTE: ImSyn is a trademark of Essex Corporation./
 /CONTACT: Harry Letaw Jr., chairman & CEO, Essex Corporation, 410-730-1097/
 (ESEX SBK) CO: Essex Corporation; Signet Bank ST: Maryland IN: CPR SU:


DC -- DC026 -- 2421 02/25/92 14:15 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 25, 1992
Words:336
Previous Article:FIRST COMMERCIAL BANCSHARES, INC. DECLARES DIVIDEND
Next Article:DISTRIBUTIONS FROM THE VANGUARD GROUP OF INVESTMENT COMPANIES ANNOUNCED
Topics:


Related Articles
NEW MANAGEMENT AT ESSEX FINANCIAL PARTNERS, L.P., FILES CAPITAL PLAN WITH THRIFT BANKING REGULATOR
FIRST ESSEX BANCORP ANNOUNCES SECOND QUARTER RESULTS
FIRST ESSEX BANCORP, INC. ANNOUNCES THIRD QUARTER RESULTS
ESSEX FINANCIAL PARTNERS, L.P., ANNOUNCES THIRD QUARTER RESULTS
ESSEX FINANCIAL PARTNERS, L.P., ANNOUNCES PRELIMINARY RESTRUCTURING AGREEMENT AND CONDITIONAL APPROVAL OF SAVINGS BANK MERGER
FIRST ESSEX BANCORP INC. ANNOUNCES FIRST QUARTER EARNINGS
FIRST ESSEX BANCORP, INC. ANNOUNCES SECOND QUARTER EARNINGS
VALLEY NATIONAL BANCORP AND ROCK FINANCIAL CORP. ANNOUNCE INTENT TO MERGE
VALLEY NATIONAL BANCORP AND ROCK FINANCIAL CORP. SIGN DEFINITIVE MERGER AGREEMENT
ESSEX BANCORP, INC. ANNOUNCES SECOND QUARTER RESULTS AND STATUS OF CAPITAL RAISING EFFORTS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters