XML 33 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
Subsequent events
12 Months Ended
Sep. 30, 2018
Subsequent Events [Abstract]  
Subsequent events
Subsequent events
The Company has evaluated subsequent events through the date the consolidated financial statements are issued. On November 1, 2018 the Company executed a purchase agreement and finalized the sale transaction with a buyer for the Alliance building and land. The Company received cash proceeds, less cost to sell of approximately $287, which will be the gain to be recorded on fiscal 2019.

On November 5, 2018, the Company entered into the First Amendment to its Credit Agreement and to its Security Agreement with its lender. The First Amendment, retroactively amended certain definitions and provisions effective as of the original closing date to clarify the parties original understandings regarding, among other things: (i) the permitted liens securing certain indebtedness of the Company to the City of Cleveland (described below), (ii) the time frames for which certain post-closing requirements would be satisfied, and (iii) the conditions under which the Company will be required to meet the minimum fixed charge coverage ratio, which is as follows: The Borrowers will not permit the Fixed Charge Coverage Ratio to be less than: (a) 1.1 to 1.0 as of August 31, 2018 or as of September 30, 2018; or (b) 1.1 to 1.0 at any month end on or after October 31, 2018; provided that the Fixed Charge Coverage Ratio will not be tested under this clause (b) unless (i) a Default has occurred and is continuing or (ii) Availability was less than or equal to 12.5% of the Revolving Commitment for three or more business days in any consecutive 30 day period (with the FCCR calculated as of the end of the month for which the lender has most recently received financial statements).

On November 8, 2018, the Company entered into an Economic Development Administration Title IX Loan Agreement (the “Cleveland Loan Agreement”) with the City of Cleveland. Under the Cleveland Loan Agreement, the City of Cleveland has agreed to loan the Company $305 (the “Cleveland Loan”) in connection with the Company’s acquisition of a forging press machine to add additional capacity to its operations in Cleveland. The term of the Cleveland Loan is 60 months, beginning on the first day of the calendar month following initial disbursement of loan funds, but in no event later than January 1, 2019, and its maturity date shall be 60 months from the first day of the calendar month following initial disbursement of loan funds, but in no event later than December 1, 2023. The interest rate on the Cleveland Loan is fixed at 3.56%.

The Company is not aware of any other subsequent events which would require recognition or disclosure in the consolidated financial statements.