The loan facility will be used to provide working capital to the company going forward and was used to pay off Wachovia Bank in full on Oct. 21, 2005. Prior to the payoff, the loan with Wachovia stood at $2.6 million, significantly reduced from the $6.1 million amount outstanding at the time of the company’s bankruptcy filing. In commenting on the new financing, Joel Weissglass, president of administration fro Magruder Color, said that the facility will provide much greater flexibility to the company, which a leading independent manufacturer of color pigments, including dry and flushed forms, serving companies in the graphic arts, paint, plastics and textile industries in North America and Europe.
Pochteca is a U.S. investment company controlled by Steve Smith, the chairman of European Colour plc. Continuing discussions are underway between Magruder and Pochteca concerning sale of substantially all of the assets of the company and an announcement regarding these discussions is anticipated in the near future.