Vaughan Foods Inc (OTCBB:FOOD), provider of fresh-cut vegetables and fruit products, as well as a line of refrigerated prepared salads, sauces, soups, and side dishes, has increased the maximum availability on its revolving line of credit from $3.5 million to $4.5 million.
The revolving line of credit is with Peninsula Bank Business Funding, a division of The Private Bank of the Peninsula of Palo Alto CA.
Vaughan and Peninsula agreed to increase the maximum amount available under the revolving line of credit on a seasonal basis, effective April 1, 2011.
Although the maturity date of the revolving line of credit is June 25, 2011, the parties agreed to extend availability now to provide Vaughan with additional liquidity support during its peak summer season. The parties are considering renewal terms targeted at extending the relationship. If a renewal is achieved on substantially the same terms, the parties currently intend that the maximum amount available under the revolving line of credit would revert to $3.5 million, effective October 1, 2011, as Vaughan’s peak season is winding down.
Vaughan’s main manufacturing facility is in Moore OK, and soups and sauces are manufactured in its Fort Worth TX facility.
