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Spring 1999
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General Automation, Inc. has announced that it has signed a loan forbearance
agreement with its primary lender, Comerica Bank, completing one of its major
milestones for 1999.
This agreement allows General Automation to maintain its $2.2million credit
facility for working capital requirements.
“The agreement allows General Automation the time to move forward on its strategic plans to complete renegotiations of existing debt with certain large creditors,” said Richard Nance, vice president and chief financial officer.
“We are pleased to have completed this key agreement,” said Jane Christie, president and chief executive officer. “I believe we have an excellent working relationship with Comerica Bank and our discussions with the bank have proven to be productive and positive.”
In March 1998, Comerica Bank informed General Automation that it was in default of its loan agreement, primarily because certain financial ratios were not meeting minimum requirements. The bank subsequently made demand for payment in full of the company’s outstanding credit line.
General Automation, IncLast Updated: 30 June 1999