LOS ANGELES — Motorcar Parts of America, Inc. (MPA) announced today that Union Bank of California, N.A. has increased MPA’s credit availability under its existing $35 million line of credit with the bank by $5 million. This increase is being made on a non-revolving basis, and any amounts utilized under this increased availability are due on June 15.
According to Selwyn Joffe, chairman, president and CEO of MPA, a number of factors, including new business, customer agreements and the expansion of the company’s Mexico facility, have placed the company’s working capital position under significant strain.
“We are pursuing additional capital to meet our continuing liquidity needs. While this short-term increase in available credit does not provide us with the capital we believe we will need after June 15, 2007 to meet our working capital needs, it provides us additional time to rebuild our cash position," Joffe added. "We are taking appropriate steps to obtain the cash necessary to repay the amounts owed under this short-term credit increase when due, to meet our other ongoing obligations and to meet our future needs."
For more information about MPA, go to: http://www.motorcarparts.com.
