Axcess restructures debt
December 25, 2003
DALLAS - RFID and digital solutions provider Axcess International has completed a financial restructuring plan that lowers interest and dividend payments on outstanding debt.
The plan, which reduces the amount of debt and preferred stock on the companyÃ¢â‚¬â„¢s balance sheet, took about six months to implement, according to Allan Frank, vice president and chief financial officer of Axcess.
One financial improvement for the company involves reducing the total corporate debt by more than 50 percent, from approximately $12 million to $6 million. An oustanding note in default of $4 million was rescheduled to a five-year term.
The company also converted a large amount of preferred stock in multiple classes, approximately $4 million worth, to common stock.
The restructuring comes a year after Axcess furloughed employees after running out of cash to run the business. But three months after putting workers on unpaid leave, the company raised enough financing for employees to return to work.
According to a recent 8-K filing with the Securities and Exchange Commission, Axcess raised $362,250 of additional working capital in 2003 through an exempt preferred stock offering.