EXHIBIT 10.56
CHASE
The Chase Manhattan Bank
Branches in the Republic of Panama
P.O. Box 9A 7o.
Panama 9A, Republic of Panama
June 4, 1997
Mr. David Djemal
Director
EZCONY TRADING CORP.
Colon Free Zone
Dear Mr. Djemal:
We are pleased to confirm that, based on our examination of the audited fiscal
financial statements of Ezcony Trading Corporation at the end of operations as
of December 31, 1994, 1995, and 1996, The Chase Manhattan Bank has approved the
following credit facility:
FOR EZCONY TRADING CORP.
US$3,000,000.00 A line of credit for the opening of letters of credit
maturing in 180 days, and/or letters of security
guarantee arising from the absence of letter of
credit or collection documents filed with us. In
addition, the line calls for refinancing of
documentary collections maturing in up to 180 days.
INTEREST: LIBOR + 1.5% per annum, adjustable at the
Bank's option and payable on the 25th of each month.
Indicative rate at the date hereof: 8-7/8%.
COMMISSIONS ON LETTERS OF CREDIT:
OPENING: 1/4% for the first 90 days,
minimum $55.00 - 1/4% for each 30
additional days or fraction thereof
INCREASE/
EXTENSION: 1/4% for each 30 additional days,
minimum $50.00
NEGOTIATION: 3/8%
ACCEPTANCE: 1/4% for each 30 days or fraction
thereof, minimum $60.00
OTHER: According to current rate
The Chase Manhattan Bank
-2-
June 4, 1997
Mr. David Djemal
Director
EZCONY TRADING CORP.
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To back up this credit facility, we will require collateral in the form of cash
or real properties with a value of US$1,000,000.00, i.e., 33.33% of the value of
this line of credit. In addition, we will require personal bonds by the
shareholders.
The credit facilities described above will remain in force for the twelve months
subsequent to the date hereof, and their continuation in force will depend on
whether, in the Bank's judgment, the conditions and other factors which have
contributed to the decision to extend have not deteriorated. To that end, Ezcony
Trading Corporation undertakes to furnish its audited fiscal financial
statements to the Bank no later than 90 days after the end of the fiscal year,
as well as interim financial statements (not necessarily audited) no later than
60 days after the midpoint of the year. The company's shareholders/sureties must
furnish their personal financial statements, preferably as of the company's
fiscal year end, duly signed by them.
We would very much appreciate your indicating your satisfaction and acceptance
of the terms and conditions of this letter by signing and returning the enclosed
copy within the 15 days from the date hereof.
Sincerely yours,
(signed, illegible)
Maribel A. de Garuz
Vice President