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LAKELAND INDUSTRIES INC FILES (8-K) Disclosing Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

July 3, 2014



Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an

Off-Balance Sheet Arrangement of a Registrant.



As previously reported by Lakeland Industries, Inc. (the "Company"), on March 27, 2014, the Company's China subsidiary, Weifang Lakeland Safety Products Co., Ltd ("WF"), entered into a line of credit financing arrangement with Weifang Rural Credit Cooperative Bank (the "Lender"), which is now known as the Shandong Anqiu Rural Commercial Bank Co., Ltd.

On June 28, 2014, WF borrowed the full committed amount of RMB 8,000,000 (approximately USD $1.3 million) under the line of credit with Lender. All of the then outstanding principal and interest under the loan will be due on December 24, 2014. Borrowings under the loan bear interest at an effective interest rate of 6.72% per annum.

WF will use the proceeds of the loan to distribute a cash dividend to the Company pursuant to a plan for future dividends previously approved by the Company's Board of Directors. This dividend and future dividend policy is part of Lakeland's worldwide cash management program.

The foregoing description of the loan is qualified in its entirety by reference to the full text of the loan agreement, a copy of which was attached as Exhibit 10.1 and Exhibit 10.2 (English translation) to the Company's Form 8-K filed with the Securities and Exchange Commission on April 2, 2014, and is incorporated by reference into this Item 2.03.


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Source: Edgar Glimpses


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