Catalysts and emission control systems developer Catalytic Solutions Inc has agreed new terms with its secured lender.
Catalytic had breached two covenants on its loan. The new deal means that Catalytic has to pay $900,000 to Fifth Third Bank by the end of 2009. The facility was due for renewal at the end of 2009 and it has been extended until the end of January 2010. The interest charge is higher.
Management is still in discussions about longer-term financing. The company reported a loss of $6m for the six months to June 2009. That included a contribution from the energy systems business sold in October 2009 for $10m - $8.5m up front and $1.5m dependent on contracts and warranties.
Catalytic also raised $4m from selling Asia Pacific intellectual property rights to Asian joint venture partner TKK. TKK will own 95% of the joint venture. The cash is payable in December and the first quarter of 2010.
Net debt was just over $12m at the end of June 2009 but cash is likely to still be flowing out of the company.
The Regulation S shares were suspended at 4p a share on 30 September 2009. The other class of shares was suspended at 2.25p a share. The combined market value of the two types of share was £1.86m.
Since returning from suspension on 21 December the Reg S shares have risen to 4.5p and the other class has fallen to 1.375p each. That values the company at £1.47m.
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.