CALGARY, May 25 /CNW/ - Inventronics Limited (IVX:TSX Venture), a designer and manufacturer of custom enclosures for the telecommunications, electric transmission, cable and other industries in North America, today announced that it has reached an agreement with its bank to reschedule long term debt repayments and that the bank has waived the previously announced covenant breach.
Under the new terms of its long term debt, the Company will make fixed monthly principal payments of $18,993 for the next 154 months ending December 2023. Under the previous schedule the payments varied over the term to July, 2014. The interest will continue to be fixed at 6.29% until March 31, 2012 at which time it can be fixed again at then current rates.
As part of these changes the bank has waived its rights under the previous covenant breach and agreed that financial covenants will be tested annually on an ongoing basis.
"As we work through these difficult economic times the Company now has fixed debt service obligations that are more manageable and the Company has positive working capital," said Dan Stearne, President and CEO. "With financial covenants set at reasonable levels and only being measured annually it is unlikely that the Company will face a breach situation."
About Inventronics
Inventronics Limited designs and manufactures custom enclosures and other products for an array of customers in the telecommunications, electronics, electric utilities and computer services industries in North America. The Corporation owns its ISO 9001-registered production facility in Brandon, Manitoba and has head offices in Calgary, Alberta.
Shares of Inventronics trade on the TSX Venture Exchange under the symbol "IVX." For more information about the Corporation, its products and its services, go to www.inventronics.com.
Disclaimer
This news release contains forward looking information that represents the Corporation's internal projections, expectations, estimates or beliefs concerning, among other things, future operating results and various components thereof or the Corporation's future economic performance. These statements relate to future events or future performance. All statements other than the statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expects", "projects", "plans", "anticipates", and similar expressions. The projections, estimates and beliefs contained in such forward-looking statements are based on management's assumptions relating to the production performance of Inventronics' assets, the cost and competition throughout the telecommunications industry in 2009, and the continuation of the current regulatory and tax regimes in the jurisdictions in which the Corporation operates, and necessarily involve known and unknown risks and uncertainties, including risks and assumptions relating to exchange rates, costs of production, outlook for sales, and other factors that may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted. The Corporation does not undertake to update any forward-looking information in this document whether as to new information, future events or otherwise. 11,404
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