We recently reported on SouthPeak Interactive's net loss of $2.6 million for the second quarter and the company's sticky business situation; according to an SEC filing, the business had been operating on a "going-concern basis." Today, the publisher behind Two Worlds and My Baby was able to address one of its major issues, however, by renewing its line of credit with SunTrust Banks.
The agreement enables SouthPeak to extend its revolving line of credit through November 30, 2010 and increase its credit facility to $8.0 million. This amendment to the previous agreement with SunTrust was officially executed on February 17, SouthPeak said. The previous agreement with SunTrust provided SouthPeak with a $7.5 million revolving line of credit that matured on December 31, 2009, but was extended on a month-to-month basis.
“The loan extension improves our flexibility in managing our capital structure and provides added security for executing on our growth strategy,” said Melanie Mroz, SouthPeak’s President and Chief Executive Officer. “We believe that securing this additional access to capital and improving the maturity terms puts us on track to address our independent auditor’s going concern qualification outlined in our most recent 10-Q filing.”
1 Comments
April 15, 2010
In Business profit and loss are tow sides. The larger you take a risk larger amount of profit you get. On the other side there is a risk of loss. Any ways it seems like the flexibility of loan has provide a great extension.
lending