Exhibit 10.1
| | | | |
 | | | | Wells Fargo Capital Finance |
| | | Business Credit Division |
| | | MAC N9811-143 |
| | | Suite 1400, 100 E.Wisconsin Avenue |
| | | Milwaukee, WI 53202 |
| | | 414 224-7477 |
| | | 414 224-7442 Fax |
September 29, 2011
MISCOR Group, Ltd.
1125 S. Walnut
South Bend, Indiana 46619
Attention: Michael P. Moore
| Re: | Short term extension of credit facilities under Credit and Security Agreement |
Dear Mr. Moore:
Reference is made to that certain Credit and Security Agreement dated as of January 14, 2008, as amended (the “Credit Agreement”) to which each of MISCOR Group, Ltd., an Indiana corporation (“MISCOR”), Magnetech Industrial Services, Inc., an Indiana corporation (“MIS”) and HK Engine Components, LLC, an Indiana limited liability company (“HK” and together with MISCOR and MIS, the “Borrowers” and each a “Borrower”), and Wells Fargo Bank, National Association (the “Lender”), acting through its Wells Fargo Business Credit operating division, are a party. Capitalized terms used herein shall have the meaning assigned to such terms in the Credit Agreement.
As you know, pursuant to the Lender’s letter dated August 29, 2011 (the “August Extension”), the Lender agreed to extend the term of the credit facilities provided under the Credit Agreement on a short term basis to September 30, 2011. In accordance with the August Extension, the Maturity Date pursuant to the Credit Agreement is September 30, 2011 and accordingly both the Revolving Note and the Term Note are scheduled to mature and be payable on such date. The parties have been working through the terms of a possible extension of the credit facilities provided under the Credit Agreement, including the terms of the subordination agreements with the Borrowers’ Subordinated Creditors but have not yet reached final agreement on those terms. Accordingly, Lender has agreed to extend the term of the credit facilities until October 7, 2011 and the term “Maturity Date” as the same is defined in the Credit Agreement is hereby amended to mean October 7, 2011. In light of the short term nature of this extension, and notwithstanding anything to the contrary in the Credit Agreement, no principal payment shall be required on the Term Note on October 1, 2011. All other amounts normally due on the first day of a month, including interest, shall be due and payable in accordance with the terms of the Credit Agreement.
Except as expressly set forth herein, the Credit Agreement and the other Loan Documents related thereto remain in full force and effect in accordance with their terms. The Lender’s agreements herein shall not constitute a “course of dealing” or any agreement of the part of the Lender to further extend the Maturity Date on either a short term or long term basis.
MISCOR Group, Ltd.
September 29, 2011
Page 2
Please acknowledge your agreement to the terms of this letter by executing a copy of the same where indicated below and returning it to the undersigned.
Sincerely,
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| WELLS FARGO BANK, NATIONAL ASSOCIATION |
|
| /s/ Ronald Yandry |
|
| Ronald Yandry |
| Vice President |
|
Acknowledged and agreed to this 30th day of September, 2011 |
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| | | | | | | | |
| MISCOR GROUP, LTD. | | | | MAGNETECH INDUSTRIAL SERVICES, INC. |
| | | | |
| By: | | /s/ Michael P. Moore | | | | By: | | /s/ Michael P. Moore |
| | Michael P. Moore, Chief Executive Officer | | | | | | Michael P. Moore, Chief Executive Officer |
| | |
| HK ENGINE COMPONENTS, LLC |
| |
| By: | | /s/ Michael P. Moore |
| | Michael P. Moore, Chief Executive Officer |
