Thursday, July 01, 2010

Lenders grant Global Railway a new extension

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Global Railway Industries announced Wednesday that its lenders have agreed to further extend the company’s credit facilities.

On March 31, Global's lenders agreed to amend the terms of the credit facilities to provide an extension on the condition that the company complete, by June 30, either a sale of one or more of its subsidiaries or a debt or equity financing of not less than $5,000,000, including a minimum equity injection of $2,500,000.

On June 30, the company and the lenders entered into an amending agreement providing a further extension of existing credit facilities to Oct. 31.

The company said it continues to evaluate financing alternatives to enhance its liquidity and overall financial position, including a debt or equity financing and/or replacement credit facilities.