Seiler Pollution Control Systems announces Dresdner Bank financial package for its German subsidiary.
The agreement calls for the Dresdner Bank to provide Seiler with a long term credit line for 9.9 million DM (approximately 6.8 million dollars) for the installation, construction, land purchase, site work and start-up costs for Seiler's first commercial vitrification system. An additional line of credit for 2.1 million DM (approximately 1.4 million dollars) is subsequently available, if needed. The terms of this 12 million DM credit line has two major conditions: Seiler must apply and receive an operating permit from the German regulatory authorities; and a bank guarantee from the Deutsche Augleichsbank (DtA), the State Bank of Germany. There are other minor conditions that Seiler must comply with as well. Among these include: allowing the Dresdner Bank access to financial records for Freiberg; and guaranteeing that the facility will operate in compliance with the anticipated permit.
According to Dr. Gerold Weser, Seiler's vice president of European operations, all conditions for this financial package should be completed by late summer, early fall 1996. Seiler is currently completing the first vitrification line for Freiberg, and is already in the permitting process. Dresdner Bank also has applied to the State Bank of Germany (DtA) for the bank guarantee on behalf of Seiler in the amount of 9.6 million DM.
Coupled with this line of credit, Seiler is to receive German governmental grants totaling over 6.6 million DM (approximately 4.5 million dollars). These grants do not have to be repaid and are given to Seiler for placing its environmentally sensitive, high temperature vitrification recycling facility in Freiberg. These grants are given in connection with stimulating and encouraging investments from business, industry, and the environmental sector to generate new job opportunities for the area.
The Dresdner Bank financial package is significant for Seiler's German and European market growth. The Dresdner Bank based this financial package from an independent study on Seiler conducted by DOWC Ost-West-Consult GmbH.
For any additional information, please contact Mr. Werner Heim, Seiler's Chief Executive Officer at 011-411-396-2700, or Mr. Alan B. Sarko, Seiler's Vice President of North American Operations at 614/791-3272.
CONTACT: Seiler Pollution Control Systems, Inc.
Werner Heim, 011-411-396-2700
Alan B. Sarko, 614/791-3272
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|Date:||Mar 8, 1996|
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