Exhibit 4.1(g)
[THE CIT GROUP LETTERHEAD]
[LOGO]
February 28, 1996
SWVA, Inc.
17th Street and 2nd Avenue
Huntington, WV 25726
Gentlemen:
Reference is made to the Financing Agreement between us dated December
30, 1986, as amended (the "Financing Agreement"). Capitalized terms used
herein and defined in the Financing Agreement shall have the same meanings
as set forth therein unless otherwise specifically defined herein.
Based upon the most recent financial information available to us, it
appears that you may have exceeded the maximum amount of inter-company
loans and/or advances permitted to be made to Xxxxxxxx Steel, Inc. under
Section 6, Paragraph 12G of the Financing Agreement. We hereby confirm our
agreement that the foregoing action shall not constitute, or be deemed to
constitute a Default and/or Event of Default under, or violation of, the
terms provisions or conditions of the Financing Agreement.
It is further agreed that, effective immediately, the Financing Agreement
shall be, and hereby is, amended as follows:
(1) The definition of "Line of Credit" in Section 1, of the Financing
Agreement shall be, and hereby is, amended in its entirety to read as
follows:
"Line of Credit shall mean the sum of $15,000,000."
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(2) Section 6, paragraph 12G of the Financing Agreement shall be, and
hereby is, amended by increasing the dollar amounts of "$1,500,000" and
"$10,000,000" respectively as they appear in clause (ii) of such paragraph
to "$2,500,000" and "$15,000,000" respectively.
In addition, we hereby confirm our agreement to waive payment of any
Mandatory Prepayment that may be due pursuant to Section 3, Paragraph 5 of
the Financing Agreement based upon Surplus Cash for the fiscal year ending
December 31, 1995, and we further confirm that failure to make any such
payment shall not constitute or be deemed to constitute a Default or Event
of Default under or violation of, the terms, provisions or conditions of
the Financing Agreement.
In consideration of (i) our execution of this agreement and (ii) the
preparation of this agreement by our in-house legal department and
facilities you agree to pay us an Accommodation/Documentation Fee of
$10,000. Such fee shall be due and payable on the date hereof and may (at
our option) be charged to your Revolving Loan Account on the date thereof.
Except as set forth above no other change in or waiver of, the terms,
provisions or conditions of the Financing Agreement is intended or implied.
This letter shall not constitute a waiver of any other existing Default or
Event of Default (whether or not we have knowledge thereof) and shall not
constitute a waiver of any future Default or Event of Default. The
effectiveness of the foregoing is subject to (x) Xxxxxxxx Steel, Inc.
signing below to confirm its agreement that the dollar limitation on its
guaranty of your Obligations to us shall be, and hereby is, increased from
"$1,500,000" to "$2,500,000"; and (y) Steel of West Virginia, Inc. and
Xxxxxxxx Steel, Inc. signing below to confirm that their respective
guaranties of your Obligations to us shall continue in full force and
effect in accordance with, and subject to, the respective terms and
provisions thereof (as amended hereby), notwithstanding the foregoing
amendment. If the foregoing is in accordance with your understanding of our
agreement kindly so indicate by signing and returning the enclosed copy of
this letter.
THE CIT GROUP/BUSINESS
CREDIT, INC.
By: /s/ Xxxxxx Xxxxxxx
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Title: Vice President
Read and Agreed to:
SWVA, INC.
By: /s/ Xxxxxxx X. Xxxx
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Title: VP & CFO
Confirmed:
STEEL OF WEST VIRGINIA, INC.
By: /s/ Xxxxxxx X. Xxxx
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Title: VP & CFO
XXXXXXXX STEEL, INC.
By: /s/ Xxxxxxx X. Xxxx
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Title: VP & CFO
