SouthPeak increases credit to $8 million
Publisher stabilises finances until end of 2010
SouthPeak Interactive has extended its credit line to November 30, 2010, and increased its credit facility to $8 million.
The company had been operating on a credit extended on a month-to-month basis with SunTrust Banks, with a limit of $7.5 million.
"The loan extension improves our flexibility in managing our capital structure and provides added security for executing on our growth strategy," said Melanie Mroz, SouthPeak’s president. "We believe that securing this additional access to capital and improving the maturity terms puts us on track to address our independent auditor’s going concern qualification outlined in our most recent 10-Q filing."
The publisher swung to a loss of $2.6 million for the Christmas quarter, as it released only two titles during the period – a strategy it called part of its "defensive posturing" in a tough market.