8 January 2010, Misgav, Israel – Seamless and engineered
apparel producer Tefron Ltd., has announced that it has signed a Memorandum of
Understanding (MOU) with its principal lenders to continue and expand its line
of credit.
The MOU, signed on 6 January 2010 with Bank Leumi le-Israel
Ltd., Bank Discount le-Israel Ltd. and Bank Hapoalim Ltd. effectively ends a
month of financial uncertainty for Tefron.
“With the signing of the MOU, we have removed the last
element of doubt about Tefron’s financial picture. This closes the chapter on
what has clearly been a challenging month for our company,” said Jacob Gelbard,
Chairman, Tefron Ltd.
The MOU ensures the continuation of the existing US $28.95
million line of credit and adds an additional US $1.8 million for a total
credit line of US $30.75 million. The MOU also calls for the addition of a
minimum of US $4 million in equity investment, an investment major shareholders
have committed to make at an upcoming rights offering.
“This successful resolution of our financial challenges
allows Tefron to focus on the most urgent work of executing our turnaround plan
and meeting customer needs with superior products,” said Gelbard. “The
continued loyalty and support of those customers and our industry-leading
technology and innovation were clearly key in reaching this agreement with our
financial partners.”
Tefron customers are some of the world’s most recognized
brands including Nike, Patagonia, Victoria’s Secret, Calvin Klein and Lululemon
Athletica.
Founded in 1977 and based in Misgav, Israel, Tefron
manufactures seamless intimate apparel, active wear and swim wear sold
throughout the world by such name-brands as Victoria's Secret, Nike, Target,
The Gap, Banana Republic, J. C. Penney, Lululemon Athletica, Warnaco/Calvin
Klein, Patagonia, Reebok and El Corte Englese, as well as other well known
retailers and designer labels. The company's innovative product line includes
knitted briefs, bras, tank tops, boxers, leggings, crop, T-shirts, nightwear,
bodysuits, swimwear, beach wear and active-wear.
