July 12, 1999 Mr. Kimball Bradley Senior Vice President Chatwins Group, Inc. 300 Weyman Plaza, Suite 340 Pittsburgh, PA 15236 Dear Kimball: The purpose of this letter is to revise and extend the letter of intent dated May 28, 1999 between Alabama...
Exhibit 10.20
Alabama Metal Industries Corporation
0000 Xxxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxx 00000
(000) 000-0000
July 12, 1999
Mr. Xxxxxxx Xxxxxxx
Senior Vice President
Chatwins Group, Inc.
000 Xxxxxx Xxxxx, Xxxxx 000
Xxxxxxxxxx, XX 00000
Dear Xxxxxxx:
The purpose of this letter is to revise and extend the letter of intent
dated May 28, 1999 between Alabama Metal Industries Corporation ("Purchaser")
and Chatwins Group, Inc. ("Seller") regarding the purchase of the assets of the
Xxxxx Division (the "Business"). All aspects of the letter of intent shall
remain intact, except for the following changes:
1. The transaction shall exclude all assets and liabilities related to the
Chinese operations.
2. The price shall be $32,600,000 payable in cash. No shares of Purchaser's
stock shall be issued. This price shall be tied to the March 31, 1999
adjusted Balance Sheet (attached hereto) indicating a Net Worth of
$20,110,000.
3. Purchaser shall not assume Seller's lease of the Libertyville, Illinois
plant. Purchaser agrees to pay 50% of the cost of exiting the lease up to a
maximum of $600,000.
4. The parties agree to target a closing date of Monday, August 16, 1999. The
exclusivity period shall be extended through August 31, 1999.
Please indicate your agreement to the above changes by signing in the space
provided below.
Alabama Metals Industries Corporation
By: /s/ Xxxx X. XxXxxx
Xxxx X. XxXxxx
Chairman
Mr. Xxxxxxx Xxxxxxx
July 12, 1999
Page 2
Accepted July 12, 1999
Chatwins Group, Inc.
By: /s/ Xxxxxxx X. Xxxxxxx
-------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Senior Vice President
Mr. Xxxxxxx Xxxxxxx
July 12, 1999
Page 2
Exhibit A
Xxxxx Division
Balance Sheet
March 31, 1999
Actual Adjustments As Adjusted
------------------ ------------------ -----------------
Assets
Cash $ 15 $ 15
A/R - net 6,709 6,709
Inventory (FIFO) 6,015 6,015
Other 557 557
------- -------
Total/Current 13,296 13,296
Xxx P, P & E 11,802 11,802
Goodwill 911 911
Other 523 523
------- -------
Total $26,531 $26,531
======= =======
Liabilities & Net
Worth
A/P 5,023 5,023
Accrued Payroll 615 615
Accrued Pension 82 82
Accrued Taxes 207 207
Accrual - Other 409 409
------- -------
Total Current 6,336 6,336
IDB 680 (680) -0-
Inter-Company 19,866 (19,866) -0-
Minority Interests 84 84
Net Worth (436) 20,546 20,110
------- -------
Total $26,531 $26,531
======= =======
