HOUSTON, Texas -- Tidel Technologies, Inc. says that it has renewed its senior revolving credit facility with JP Morgan Chase until June 30, 2003, under the same terms.
Leonard Carr, Tidel senior vice president, said that the ATM manufacturer's relationship with Chase and its predecessor, Chase Manhattan Bank, dates back to 1997. Carr said that Tidel was pleased to continue the relationship, as the ATM manufacturer continues to negotiate with holders of its subordinated convertible debentures to restructure terms of those loans.
According to Tidel's financial statements for the quarter ended June 30, 2002, during which it posted a net loss of $1 million on revenues of $6.2 million, it has incurred interest expense of $675,000 per quarter, including penalty interest of $405,000 per quarter, on its subordinated debentures since the debt was "put" back to Tidel in June 2001. Tidel has made no interest payments to the debenture holders since June 2001.
Tidel on Dec. 31 requested an extension from the Securities and Exchange Commission for reporting its financial results for the fiscal year ended Sept. 30, 2002.
Carr said Tidel is now "nearing the tail end" of its annual independent audit and expects to report its 2002 year-end results as early as next week.
He said that Tidel expects to report a smaller loss for 2002's fiscal year compared to its loss for 2001, which included a write-off for bad debts of $24.1 million related to the collection of accounts receivable from onetime customer Credit Card Center.
Tidel's financials are "improving slowly but steadily," Carr said.
