SPRINGDALE -- Advanced Environmental Recycling Technologies' credit line with with Liberty Bank of Arkansas expired on Sept. 15, according to a federal filing with the Securities and Exchange Commission on Monday.
AERT has paid Liberty Bank a fee of $50,000 to extend the debt to Dec. 15. The company said it is working to secure a bridge loan in the amount of $20 million prior to the extension deadline.
The line of credit bears interest at 9 percent. As of Sept. 30, the company owed Liberty Bank $11.2 million.
The credit line is secured by inventory, accounts receivable, general intangibles and other current assets, as well as by fixtures and equipment. The credit facility is guaranteed by the company's largest stockholder, Marjorie Brooks, and a company controlled by her, the filing said.
