Item 8.01 Other Events
On July 16, 2009, Video Display Corporation (the "Company") filed with the Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 pertaining to its unfiled Quarterly Report on Form 10-Q for the period ended May 31, 2009. The Company was unable to file its Quarterly Report on Form 10-Q for the period ended May 31, 2009 on a timely basis, due to unforeseen delays in the collection and review of information and documents affecting disclosures in such report, as described below.
The Company has a Loan and Security Agreement dated September 26, 2008 with RBC Centura Bank ("RBC"), which provides a $17 million line of credit to the Company and a $3.5 million line of credit to the Company's subsidiary Fox International, Ltd. ("Fox"). As of May 31, 2009, the Company was not in compliance with the consolidated Fixed Charge Coverage Ratio as defined by the RBC credit line agreements. In addition, the Fox line of credit expired in June 2009. The Company is currently in negotiations with RBC for a new revolving line of credit and term loan with more favorable thresholds for the covenants, a waiver of the Fixed Charge Coverage Ratio violation and an extension of the Fox line of credit for a period of 90 days.
The Company intends to file its Quarterly Report on Form 10-Q for the period ended May 31, 2009 as soon as practicable; however, it is not currently possible to project the date on which the report will be filed.

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