Revolving Credit Line
|3 Months Ended|
Sep. 30, 2011
|Revolving Credit Line|
|Revolving Credit Line||
Note (4) - Revolving Credit Line: The Company’s $2,250,000 bank revolving line of credit facility expired on October 31, 2011. Due to a change in ownership of the Company’s bank lender, a new line of credit facility is in process of being negotiated with the successor bank. While it is management’s belief that a new revolving line will be extended to the Company on similar terms and conditions as under the Company’s former line of credit, there can be no assurance that a new credit facility will be entered into or that the terms of any credit facility, if entered into, will be comparable to the Company’s expired credit facility. The Company’s obligations under the former facility were guaranteed by the Company’s subsidiaries and collateralized by substantially all of the Company’s and its subsidiaries’ assets. No amounts were outstanding under this facility at September 30, 2011 or June 30, 2011, nor were there any amounts outstanding at any time during fiscal 2011 or the first quarter of fiscal 2012. The loan agreement required maintenance of certain debt service coverage and leverage ratios and contained other restrictive covenants, including limitations on the extent to which the Company and its subsidiaries could incur additional indebtedness, pay dividends, guarantee indebtedness of others, grant liens, sell assets and make investments. The Company was in compliance with these covenants at September 30, 2011 and 2010 and June 30, 2011.
Tabular disclosure of short-term or long-term contractual arrangements with lenders, including letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line.
Reference 1: http://www.xbrl.org/2003/role/presentationRef