Business
Proxim Wireless Modifies Lending Relationship
Proxim Wireless Modifies Lending Relationship.
About this update from Proxim Wireless Corporation
[{"type":"text","content":"For Further Information Contact:Proxim WirelessDavid RenauldVice President, Corporate Affairs(413) 584-1425 [email protected] Proxim Wireless Modifies Lending Relationship Silicon Valley, December 17, 2009 – On December 11, 2009, Proxim Wireless Corporation (OTCQX: PRXM) received a countersigned document from its lender Bridge Bank, National Association modifying the lending relationship. The primary terms of that modification agreement are summarized as follows: Bridge Bank waived financial covenant defaults that had arisen during the third quarter of 2009The required asset coverage ratio (being a ratio of cash plus eligible domestic and foreign accounts receivable to indebtedness to Bridge Bank) was increased to 1.75 to 1.00 from 1.50 to 1.00The financial covenant relating to performance to planned revenue was eliminatedThe financial covenant relating to performance to planned net income was changed to a quarterly covenant to be first tested for the quarter ended March 31, 2010A new financial covenant was added requiring Proxim’s EBDA (net income plus depreciation and amortization) net loss for the quarter ending December 31, 2009 to be no greater than $(350,000)Bridge Bank accepted a revised 2009 operating plan for Proxim and received a $25,000 covenant reset fee About Proxim WirelessProxim Wireless Corporation (OTCQX: PRXM) is a leading provider of end-to-end broadband wireless systems that deliver th...