Allen-Vanguard receives further loan payment extension
2008-11-28 07:14 ET - News Release
Mr. David Luxton reports
ALLEN-VANGUARD ANNOUNCES FURTHER EXTENSION OF LENDER ACCOMMODATION
Allen-Vanguard Corp.'s lenders have extended the accommodation agreement announced in Stockwatch Oct. 31, 2008.
The accommodation further defers compliance with certain financial covenants and payment of the $10-million quarterly principal repayment that was due Sept. 30, 2008, until Dec. 10, 2008.
"Our lenders continue to work with us and to provide support in our efforts to recapitalize the company, and we expect to conclude on a preferred transaction prior to Dec. 10," said David E. Luxton, president and chief executive officer. "We understand that there continues to be uncertainty about our working capital position and our ability to fund our growth, particularly following our recent announcement of strong backlog and order growth as well as expanded partnerships and teaming agreements. We anticipate that when this refinancing process is concluded management and stakeholders can refocus on the intrinsic value of Allen-Vanguard and its business opportunities and proprietary technologies as a global leader in protection and countermeasures against hazardous devices."
