Debt Obligations

9 Months Ended

Sep. 30, 2013

Debt Obligations

Debt Obligations

9. Debt Obligations

Debt obligations consisted of the following (in thousands):

	September 30, 2013		December 31, 2012
Credit Agreement, revolving line-of-credit	$	—	$	—
China Credit Facility, 6.2% at September 30, 2013	$	1,141	$	397

The Company’s Prior Credit Agreement, was scheduled to mature on October 26, 2014, provided revolving credit up to $4 million and €3 million.  At September 30, 2013, approximately $8,100,000 ($4,000,000 and € 3,000,000) was available under the Prior Credit Agreement.  As a result of the acquisition of Globe Motors, Inc., the Company entered into a new Credit Agreement, thus terminating the Prior Credit Agreement.  See further discussion in Note 11. Subsequent Events.

The Prior Credit Agreement contained certain financial covenants related to maximum leverage, minimum fixed charge coverage and minimum tangible net worth of the Company.  The Company was in compliance with all covenants at September 30, 2013.

Approximately $700,000 (€ 300,000 and 2,100,000 Swedish Krona (“SEK”)) was available under bank overdraft facilities in Europe.

The Company also has a Credit Facility in China providing credit of approximately $1,600,000 (Chinese Renminbi (“RMB”) 9,500,000).  This facility is used for working capital and capital equipment needs at the Company’s China operations, and will mature in October 2014.  At September 30, 2013, there was approximately $400,000 (RMB 2,500,000) available under the facility.