>>
Home / Knowledge / News / Apparel/Garments / Lakeland completes funding of $18.5mn
Lakeland completes funding of $18.5mn
02
Jul '13
Lakeland Industries, Inc. , a leading global manufacturer of industrial protective clothing for industry, municipalities, healthcare and first responders on the federal, state and local levels,  announced the completion of financing transactions that combined a $15 million Senior Credit Facility with AloStar Business Credit, a division of AloStar Bank of Commerce, and a $3.5 million subordinated term loan, together with a warrant for common stock, with LKL Investments, LLC, an affiliate of Arenel Capital, a private equity fund.

Andy McGhee, President of AloStar Business Credit said, "We are pleased to support Lakeland Industries, Inc. as they restructure in order to move forward." AloStar Business Credit provides asset-based lending products nationwide to companies with financing needs up to $20 million.

The proceeds from such financing were used to fully repay the Company's former financing facility with TD Bank, N.A. in the amount of approximately US$13.7 million. Also repaid at closing was the warehouse loan in Canada with a balance of Cdn$1,362,000 Canadian dollars (approximately US$1,320,000), payable to Business Development Bank of Canada.

Management believes that the conditions that were reported in its Form 10-K resulting in doubts about its ability to continue as a going concern have now been resolved as a result of the closing of this financing. The Company anticipates it will file an amended Form 10-K shortly.

Christopher J. Ryan commented, "Since we have completed our refinancing of the TD Bank Credit Facility and alternately worked with the investment bank of Raymond James for a year considering all other possibilities, such as M&A transactions and financing alternatives, among many others, we can now focus much more on the turnaround currently being masked by the poor Brazilian results.

My goal and top management's goal is to turn this Company around after having been hit by four significantly negative events all in a short time: the loss of the DuPont license, the huge judgment against the Company by a Brazilian Arbitration panel which management feels strongly did not fit the facts, the impending loss of the Company's line of credit with TD Bank and the loss of half of the Brazil subsidiary's sales an as indirect result of the arbitration judgment. The first three events have been dealt with successfully and the fourth we are about to address.

"As we previously disclosed, the issues we had with Brazil directly and indirectly led to our violating covenants with our TD Bank loan agreement which caused a default. While TD Bank refrained from exercising any remedies it had, it continued to have the right to do so, as long as we were in default. Further, the loan facility with TD Bank was set to expire June 30, 2013.

“ The Company, therefore, has been in a liquidity shortage as a result of these issues, leading to the going concern issues as raised in our Form 10-K report. We have dealt with some painful issues, but we believe the financing transactions we have just consummated are the best alternative we had and are in the long-term interest of the Company and our stockholders. As a result of a stabilized financing situation and the ongoing operating turnaround, we now expect to be in a stronger position to maximize shareholder value, whatever course it should take.


Must ReadView All

Pic: Shutterstock

Textiles | On 20th May 2022

China reiterates call for tariffs cut after US official’s statement

After US treasury secretary Janet Yellen called for tariffs cuts on...

Pic: Shutterstock

Textiles | On 20th May 2022

World economy projected to grow by 3.1% in 2022: UN

The world economy is projected to grow by 3.1 per cent in 2022,...

Pic: Shutterstock

Textiles | On 20th May 2022

Lowering logistics costs key to Vietnam’s export competitiveness

Reducing logistics costs is crucial to raising competitiveness of...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Always best to produce under own supervision

Textile Industry, Head honchos

Textile Industry
Head honchos

Biggest learning was adaptability

Textile Industry, Head honchos

Textile Industry
Head honchos

Quality & affordability to affect market acceptability of new fibres

Eric Durivault,

Eric Durivault

<font color="#333333" face="Helvetica, sans-serif">IDELAM is a...

Ahmet Gecikli,

Ahmet Gecikli

Ser Mekatronik, founded in 2008, is specialised for providing mechanical...

Ishak Aydin Ozturk,

Ishak Aydin Ozturk

<font face="Calibri, sans-serif">Innovative pioneer in textile production, ...

Suresh Patel, Non Woven Federation of India

Suresh Patel
Non Woven Federation of India

The Non Woven Federation of India (NWFI), representing the regional...

Tonny De Beer, PFNonwovens

Tonny De Beer
PFNonwovens

PFNonwovens (PFN) was established in 2018 by the combination of two...

Christopher Astley, INDA

Christopher Astley
INDA

<font face="Arial, sans-serif"><span style="font-size: 16px;">INDA,...

Payal Singhal, Label - Payal Singhal

Payal Singhal
Label - Payal Singhal

Leading South Asian fashion designer, <b>Payal Singhal </b>known for her...

Sujata & Taniya Biswas, Suta

Sujata & Taniya Biswas
Suta

Founded by <b>Sujata and Taniya Biswas</b>, Suta is a humble brand which...

Carmen Emanuela Popa, Label - Carmen Emanuela Popa

Carmen Emanuela Popa
Label - Carmen Emanuela Popa

<b>Carmen Emanuela Popa,</b> a Romanian fashion designer, is known for her ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments

ESTEEMED CLIENTS

Tory Burch Hong Kong Ltd
JES MEDIA, INC
H. Stoll AG & Company KG
Under Armour Global Sourcing Ltd
Performance Days
Eurofins BLC Leather Technology Centre Ltd
Jiangsu Yingyang Nonwoven Machinery Company Limited
Bluestem Global Sourcing Limited
Helly Hansen Far East Ltd
IKEA of Sweden AB
Meera Dyestuff Industries
Copenhagen Fashion Summit
International Textile Manufacturers Federation
Walmart
EUROVET ASIA LTD
Splash
Colours India Inc
Brückner Trockentechnik GmbH & Co. KG
Centric Software
Etam Group Strategy Hong Kong Limited
Shima Seiki Mfg. Ltd.
GHCL LIMITED
IIGM Private Limited
Thai Trade Center
ZAITEX spa
Zünd Systemtechnik AG
Lenzing Aktiengesellschaft - India
Esprit Europe Services GmbH
EMBEE CORPORATION
Babyshop
CGS Inc.
Arvind Limited
Sportswear Company Spa
EPCH
APLF Limited
Weitmann & Konrad GmbH & Co. KG
Gokaldas Exports Limited
Maceton Limited
G-Star Raw C.V.
CSGIA(China Screen Printing & Graphic Imaging Association)
Abit
Woolmark Services India Pvt. Ltd.
Aleph Srl
Hirdaramani International Export Private Limited
Thai Acrylic Fibre Company Limited
BIMBA ;& LOLA SL
Nihalani Events Management
KAS Direct Sourcing
TÜYAP IHTISAS FUARLARI A.S.
Stahl Holdings B.V.,
Green Fibre
THE BOMBAY DYEING ;& MFG.CO. LTD
Gap International Sourcing Limited
TEXVALLEY MARKET LIMITED
Cat Tuong Real Estate Group Joint Stock Company
Xtema - Thomas Lebherz Textilmaschinen
Target Corporation (MN)
Desigual - ABASIC, S.A.
Applied DNA Sciences Inc
Karl Mayer Textilmaschinenfabrik GmbH
Dow Silicones Corporation
Datacolor AG Europe
Benetton Group
Officina Meccanica Dora Enrico Srl
KIABI
Gloria Jeans
N9 World Technologies Private Limited
TESTEX AG, Swiss Textile Testing Institute
Amazon China
SHAHI Exports Pvt Ltd
Rieter India Private Limited
FULGAR SpA
Saurer Textile Solutions Pvt. Ltd.
Midas Clothing Limited
Groz-Beckert East Asia LLP
Lululemon Athletica Inc
Color Service s.r.l.
Thermore (Far East) Ltd.
Inter Expo Center Ltd.
H;&M Hennes ;& Mauritz (Far East) Ltd
Kornit Digital Asia Pacific Ltd
Sateri (Jiujiang) Fiber Co.,Ltd
VNU Exhibitions Asia
Nandan Denim Limited
Puma
UBM China (Shanghai)
Chori Company Limited
Lisa S.P.A.
Tradewind International Servicing
Phong Phu international JSC (PPJ)
Pt. Peraga Nusantara Jaya Sakti
Asos
Rosset ;& Cia Limited
Indofil Industries Limited - Specialty & Performance Chemicals Division
NITI Aayog
IDH – The Sustainable Trade Initiative
J ;& P Coats
Indo Tex
Restoque S.A.
Permoda(Koaj/Armi/Pronto/Bkul)
Italian Trade Commission
Vardhman Textile Ltd
Recron Polyester from Reliance Industries Limited
COTTON COUNCIL INTERNATIONAL
Flainox S.r.l.
USTER
Palexpo SA
Aramark Uniform ;& Career Apparel, LLC
Vianney Textil Hogar S.A. De C.V.
Mayer & Cie. GmbH & Co. KG
SYNERGIES HONG KONG LIMITED
BTSR International S.P.A.
Haelixa AG
The LYCRA Company Singapore  Pte. Ltd
Calvin Klein
MAS Active / MAS Kreeda / MAS Bodyline
PVH Corporation
Decathlon
T.T. Limited
Boardriders Asia Sourcing Limited
Deckers Outdoor (Guangzhou) Consultant Co., LTD.
BRINKMANN GMBH
The LYCRA Company Singapore  Pte. Ltd
Alison Hayes Romania
Tchibo GmbH
LC Waikiki
Tommy Hilfiger
Equinox Impex India
Lifestyle
Comasia Limited
Landmark Group
Recron Polyester from Reliance Industries Limited
BIANCA
Sportmaster Ltd.
John Varvatos
Guess Europe Sagl,
Kern – Liebers Textile
Reiter India Private Limited
ITMA Services Pte Ltd
Taiwan Textile Federation (TTF)
Savio Macchine Tessili S.P.A.
Marzoli Machines Textile s.r.l.
Zydex Industries
Lottmann Communications
Messe Duesseldorf
Datatex Consulting Srl
China World International Exhibition Company Limited
Infor (Hong Kong) Limited
Shanghai  Aige Exhibition Service Co., Ltd
Truetzschler India Private Limited
DyStar India Pvt. Ltd
Grasim Industries Limited
HYOSUNG CORPORATION INDIA PRIVATE LIMITED
Loris Bellini S.r.l.
Jindal Worldwide Limited
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Page Industries Limited (Bangalore)
Rayonese Textile Inc., Division de Culp Inc.
OVS Hong Kong Sourcing Ltd.
K AND D ITMACH EXPOSITIONS LLP
GIOVANNI BOZZETTO S.p.A.
Eastman Chemical Company
FESPA (Reigate)
Chico’ FAS
Messe Frankfurt Exhibition GmbH
Seasalt Limited
Groz-Beckert KG
International Sourcing Expo Australia
Mesdan SPA
BTC Textiles LLC
Lenzing Aktiengesellschaft
C;&A Sourcing International Ltd
NV Michel Van de Wiele
Hela Clothing Pvt Ltd
Brandix Lanka Limited
Gatsby Africa
Itema Weaving (India) Private Limited
G.A.S. unternehmenskommunikation gmbh
Varner AS Retail
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Istanbul Fuarcilik A.S.
Lacoste (Wanchai)
Aquarelle Clothing Limited
IFF Media Ag - International Media Services
Coats Digital Limited
DuPont de Nemours, Inc.,
The Top Form Brassiere Manufacturing Company Limited
Bluesign Technologies Ag
TESCO INTERNATIONAL SOURCING LIMITED
Tuyap Tum Fuarcilik Yapim A.S.
Huntsman (Singapore) Pte Ltd
BIRLA CENTURY A DIVISION OF CENTURY TEXTILES AND INDUSTRIES
X-Rite Asia Pacific Limited (HK)
Lectra Technologies India Pvt Ltd.
Alix Partners
GERBER TECHNOLOGY LTD.
Sainsbury's Argos Asia Limited
Newtech Textile Technology Development (Shanghai) Company Limited

May 2022

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search