STRATEGIC PARTNERS
January 6, 2002
HOUSTON -- Tidel Technologies Inc. (Nasdaq:ATMS) has reached an agreement with Montrose Investments Ltd., the holder of $15 million principal amount of Tidel's 6 percent Convertible Debentures, to extend the first "put date" from June 5 until June 26.
According to Tidel, the parties agreed to the extension to allow time for continued discussions regarding potential modifications of the terms of the Debentures. The amended date coincides with the first "put date" for the remaining $3 million of Debentures held by the Acorn Investment Trust.
Tidel also announced that it had reached an agreement with its senior debt holder, Chase Manhattan Bank, to amend the terms of its $10 million Revolving Credit Agreement. The amendment provides for a temporary adjustment to the components of the borrowing base to permit additional credit availability of $1 million through Aug. 31.
Tidel's earnings have taken a hit due to a halt in shipments of ATMs to Credit Card Center, the financially strapped Philadelphia-based ISO that was once its biggest distributor. Tidel's second-quarter net income for 2001 was $65,000, down from $2,519,000 a year earlier when it was still shipping units to CCC.
According to Tidel, it did not sell any ATMs to CCC in 2001's second quarter, which ended March 31. For the year-earlier quarter, Tidel's revenues included sales to CCC of $10,850,432, or 58 percent of Tidel's total revenues.
