Bonded Motors Reaches Accord With Major Trade Suppliers/Bank
14 December 1999
Bonded Motors Reaches Accord With Major Trade Suppliers/Bank
LOS ANGELES--Dec. 13, 1999--Aaron Landon, chairman of the board and chief executive officer of Bonded Motors Inc. today announced that the company has reached an agreement with its major trade suppliers and with Comerica Bank - California.Under the terms of the agreement, major trade suppliers have agreed to extended repayment terms on future orders, and to place existing balances on a long-term note. In consideration for extended terms on future orders, Landon has deposited personal funds totaling $375,000 as partial cash collateralization against these future orders.
"We are absolutely committed to the success of Bonded Motors and have a plan in place. This agreement indicates that our creditors and suppliers are equally committed to our success. For the short term, internal projections show that the plan with our major trade suppliers and with Comerica Bank - California are a workable solution during this difficult period," Landon said.
"Going forward we will explore every option to reduce costs and again return to profitability."
Comerica Bank - California has agreed to continue to work with Bonded Motors on a go-forward basis, provided that certain debt repayment benchmarks are met. A significant benchmark calls for a reduction of Bonded's indebtedness to Comerica Bank - California by March 31, 2000.
Bonded Motors (www.bondedmotors.com) is a re-manufacturer of car and light truck engines with headquarters in Los Angeles, manufacturing facilities in California and Georgia, and distribution centers in California, Washington, Colorado, Ohio, New York and Georgia.
The company's principal customers are automotive parts chain stores, such as Pep Boys - Manny, Moe and Jack, CSK Automotive (Checker, Schucks, Kragen), Paccar Automotive (Grand's and Al's Auto Parts), and Genuine Parts/NAPA.
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: The statements in this release regarding operational improvements, future revenue and earnings expectations and the expansion of the company's facilities and markets are subjective or forward-looking statements that include risks and uncertainties, including, but not limited to, product demand and development, technological advancements, impact of competitive products and pricing, growth in targeted markets, manufacturing capacity, risks of foreign operations, and other information detailed from time to time in the company's Securities and Exchange Commission filings.