WILLIAMS CONTROLS ANNOUNCES LOAN AGREEMENT
WILLIAMS CONTROLS ANNOUNCES LOAN AGREEMENT PORTLAND, Ore., June 5 /PRNewswire/ -- Williams Controls Inc.
("Williams") (NASDAQ: WMCO) announced today that it has entered into an agreement with First Interstate Bank of Oregon, N.A. to amend the company's current lending arrangement which enables Williams to be in compliance with all loan covenants. The lending arrangement consists of a revolving line of credit and term loans which are secured by essentially all of the assets of the company.
In addition to revising the loan covenants, the loan amendment extends the revolving line of credit until Jan. 31, 1993. The revolving line of credit may not exceed the lesser of $2,500,000 or an agreed upon percentage of eligible accounts receivable and inventory. The term loans are due on Oct. 31, 1993 and are subject to the original terms of the lending arrangement. The unpaid principal balance of the term loans is approximately $2,500,000. As has been previously reported, Williams has been classifying the term loans with the bank as a current liability due to various loan covenant violations. The amendment to the loan agreement will enable Williams to classify the term loans as long-term debt. Williams Controls manufactures a wide range of electronic, pneumatic and hydraulic controls, and exhaust brakes for the heavy vehicle manufacturing industry which are sold worldwide. -0- 6/5/92 /CONTACT: Thomas W. Itin or Joseph W. Hovorka of Williams Controls, 503-684-8600/ (WMCO) CO: Williams Controls Inc. ST: Oregon IN: SU:
BB-MC -- DV005 -- 7493 06/05/92 13:46 EDT
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|Date:||Jun 5, 1992|
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