Kontrol Technologies Corp. announced that it has entered into an amended credit agreement with its secured lender and exited forbearance. The Company entered into an amended credit agreement and exited from forbearance, thereby returning to regular commercial borrowing.

Under the terms of the credit agreement, interest is payable at Bank Prime rate plus a margin (between 1.25% and 2.0% based on the Company?s ratio of secured debt to earnings before interest taxes and depreciation) with principal repayments amortized over five years. The Company started 2023 with approximately $15 million of secured debt and by the end of first quarter 2024 anticipates a secured debt balance of approximately $3.7 million. For 2024 financial reporting, as a result of exiting forbearance, the Company will classify principal obligations on the secured debt which are beyond 12 months as long-term debt on its balance sheet.