Action Products forestalls credit crunch
By Staff -- Playthings, 11/2/2007 8:46:00 AM
ORLANDO, Fla.—Action Products International this week moved to delay the due date of its current credit line.
The specialty toymaker said in a U.S. Securities and Exchange Commission filing on Oct. 31 that it entered into a new agreement with Regions Bank to extend the due date of its $3 million line of credit to May 31, 2008, the fourth such extension to an agreement that was originally to come due at the end of October 2006. As of Oct. 23, 2007, the toymaker had an outstanding principal balance on the loan of $1.84 million.
The newly amended credit line provides a decreased borrowing limit of $2 million. It is secured by Action Products’ accounts receivable and inventories, and by an agreement giving Regions Bank an assignable first priority mortgage on the company’s distribution center.
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