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Secured Lines of Credit
12 Months Ended
Dec. 31, 2011
Secured Lines Of Credit [Abstract]  
Secured Lines Of Credit [Text Block]

5. Secured Lines of Credit

 

In June 2011, Cole Taylor provided a line of credit drawable up to 85% of eligible receivables and 60% of eligible inventory for a period up to June 2016. The borrowings are collateralized, with recourse, by MBC's and Releta's trade receivables and inventory located in the US. This facility carries interest at a rate of either LIBOR plus 3.5% or prime plus 1% and is secured by substantially all of the assets, excluding real property, of Releta and MBC. The amount outstanding on this line of credit as of December 31, 2011 was approximately $895,300. Included in the Company's balance sheet as accounts receivable at December 31, 2011, are account balances totaling $2,308,400 of accounts receivables and $1,799,600 of inventory collateralized to Cole Taylor under this facility.

 

On April 26, 2005, Royal Bank of Scotland Commercial Services Limited ("RBS") provided an invoice discounting facility to KBEL for a maximum amount of £1,750,000 based on 80% prepayment against qualified accounts receivable related to KBEL's UK customers. The initial term of the facility was for a one year period after which time the facility could be terminated by either party by providing the other party with six months notice. The facility carries an interest rate of 1.38% above the RBS base rate and a service charge of 0.10% of each invoice discounted. The amount outstanding on this line of credit as of December 31, 2011 was approximately $854,500.