SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: November 21, 2001
EMTEC, INC.
(Exact name of Registrant as specified in Charter)
Delaware 2-54020 87-0273300
(State or other jurisdiction of (Commission File No.) (IRS Employer
incorporation Identification
Number)
817 East Gate Drive, Mount Laurel, New Jersey 08054
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (856) 235-2121
ITEM 5. OTHER EVENTS.
On November 21, 2001, we entered into a $10.0 million revolving credit
facility with Fleet Capital Corporation, formerly Summit Business Capital
Corporation ("Fleet"). We simultaneously terminated our prior financing
agreement with IBM Credit Corporation ("IBM") by paying IBM an aggregate of
$2,270,636.
Interest on outstanding loans under our revolving credit facility with
Fleet is charged monthly at a fluctuating rate per annum equal to 0.25% above
the Prime Rate and, at our option, interest on up to 50% of the outstanding
loans may be charged at LIBOR plus 2.75%.
Our Fleet revolving credit facility is collateralized by a lien upon
and security interest in substantially all of our assets. As our current credit
facilities with two of our primary trade vendors, GE Access, and Ingram Micro,
were also collateralized by substantially all of our assets, we, Fleet, GE
Access and Ingram Micro, have entered into intercreditor agreements, which
provide that as regards to these vendors, our obligations to Fleet are accorded
priority.
On November 21, 2001, we also entered into a Wholesale Financing
Security Agreement with IBM. This credit facility, which is collateralized by a
$750,000 letter of credit in favor of IBM, affords us up to a like amount of
credit to purchase IBM products.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits:
EXHIBIT NO. DESCRIPTION
10.1 Loan and Security Agreement, dated November 21, 2001, by and between Fleet
Capital Corporation and Registrant.
10.2 Agreement for Wholesale Financing, dated November 21, 2001, by and between
IBM Credit Corporation and Registrant.
10.3 Subordination Agreement, dated as of the 21st day of November, 2001, among
Registrant, MRA Systems, Inc. dba GE Access and Fleet Capital Corporation.
10.4 Intercreditor Agreement, dated as of November 21, 2001, between Fleet Capital
Corporation and Ingram Micro Inc. and accepted by Registrant.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: November 26, 2001
EMTEC, INC.
(Registrant)
By: /s/John Howlett
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John Howlett
Chairman and President
STATEMENT OF DIFFERENCES
The section symbol shall be expressed as....................................'SS'