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MGPI > SEC Filings for MGPI > Form 8-K on 6-May-2009All Recent SEC Filings

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Form 8-K for MGP INGREDIENTS INC


6-May-2009

Entry into a Material Definitive Agreement, Creation of a Direct Financial Ob


Item 1.01. Entry into a Material Definitive Agreement

(a) As previously reported, on March 26, 2009 we entered a Sixth Amendment to our Credit Agreement. Although the Sixth Amendment waived our prior defaults and imposed new financial covenants, it did not address the Credit Agreement's original financial covenants. Because these covenants were once again in effect, we were again in default under the fixed charge coverage, working capital, tangible net worth and leverage ratio covenants as of March 31, 2009, and, as result, were in cross-default under our 5.45% Secured Promissory Note to Commerce Bank and under our loan agreement with Union State Bank. After we brought the matter to their attention, our lenders waived these most recent defaults and the credit facility banks and Union State Bank expressly waived any future defaults of these financial covenants.

(b) On May 4, 2009, we signed an unsecured promissory note to the Union Pacific Railroad Company for approximately $997,545, which reduced trade accounts payable by a like amount. The note bears interest at the rate of 10 percent per annum and is payable in 14 monthly installments of principal and interest aggregating $75,000 and one final payment of $11,630.



Item 2.03. Creation of a Direct Financial Obligation or an Obligation
under an Off-Balance Sheet Arrangement of a Registrant.

Reference is made to paragraph (b) of Item 1.01 above for information on a new direct financial obligation to which we are parties.

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