Notice of Loan Covenant Violation from National Bank of Arizona to Ready Mix, Inc.

Contract Categories: Business Finance › Forbearance Agreements
Summary

National Bank of Arizona has notified Ready Mix, Inc. that it is in violation of a loan covenant under their Business Loan Agreement, specifically failing to meet the required debt coverage ratio as of December 31, 2008. The letter states that this notice does not waive any of the bank's rights or remedies, and the bank may take action due to this or any related default. The letter is addressed to Ready Mix, Inc.'s CEO and serves as formal notice of the breach.

Read More Arrow
EX-10.24 3 p15612exv10w24.htm EX-10.24 exv10w24
Exhibit 10.24
8/7/09
Mr. Bradley E. Larson, Chief Executive Officer
Ready Mix, Inc.
4602 E. Thomas Rd., Suite 100
Phoenix, AZ 85018
Re: Loan Covenant Violations
Dear Brad:
After analyzing the financial statements dated 12-31-08, Ready Mix, Inc. is found to be in violation of certain loan covenants. These covenants are outlined in the Business Loan Agreement between Ready Mix, Inc. and National Bank of Arizona. The loan covenant violations are listed below:
             
Period   Covenant   Limit   Actual
12-31-08   Debt Coverage Ratio   1.25   .80
             
             
This letter is not a waiver of any right available to the Bank because of covenant violations. The Bank may exercise its rights and remedies against Ready Mix, Inc. because of this violation or at any other time. The Bank also reserves its rights and remedies with respect to any other notes or loan agreements under which the occurrences of this violation automatically becomes an event of default.
If you have any questions, please do not hesitate to contact me personally by calling Jay Hathcock at ###-###-####.
Sincerely,
Jay W. Hathcock
Vice President
cc: file
enclosures (1)