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American Bio Medica Corp. Message Board

  • jamessalmon40 jamessalmon40 Feb 11, 2009 11:09 AM Flag

    anyone know what this means

    On February 4, 2009, American Bio Medica Corporation (the "Company") received a letter from First Niagara Bank ("First Niagara") notifying the Company that an event of default had occurred under the Company's Letter Agreement and other documents (the "Transaction Documents"), related to the extensions of credit made by First Niagara to the Company; more specifically, the Company failed to comply with the maximum monthly net loss covenant set forth in the Letter Agreement. Pursuant to the terms of the Transaction Documents, all obligations of the Company to First Niagara under the Transaction Documents can be declared by First Niagara to be immediately due and payable. The principal amount totals $1,636,635.97, plus interest and other charges through February 4, 2009 (collectively, the "Debt").

    As an accommodation to the Company, First Niagara has decided to not immediately accelerate the Debt. The Company expects to enter into a Forbearance Agreement with First Niagara memorializing measures and conditions required by First Niagara. Until a Forbearance Agreement is entered into, First Niagara reduced the commitment on the Company's Line of Credit to $650,000 (previously the Line of Credit commitment was $750,000), and placed a hold on one of the Company's accounts held at First Niagara.

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    • Well i can tell you that the old fools that continually fire CEO'S are running ABMC into the ground. They should let people who know run things and not interfere with operations.

    • it means the bank has notified them that they did not meet the agreement they made, so anytime the bank wants they can force ABMC into bankruptcy. but, knowing nothing good will happen, they choose not to for the time being....

      • 1 Reply to tanya_lee_12203
      • It's been over two years since I've looked at this site. What it means is that the bank will do (is doing) everything they can to preserve their principal and cut their losses. Looks like Stan has succeded in his efforts to grab as much cash as he can for as long as he can then cry over loosing the company. He used to be able to bring the stock back above $2.00 through a Las Vegas based (secret) Nevada corporation; but, economics has finally caught up and his "cash cow" has dried-up! Maybe the assets of the company can be sold to a real busines - like, if you innocent stockholders are lucky, for one cent on the (current)dollar...

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