Short-Term Borrowings And Current Portion Of Long-Term Debt

12 Months Ended

Dec. 25, 2011

Short-Term Borrowings And Current Portion Of Long-Term Debt [Abstract]

Short-Term Borrowings And Current Portion Of Long-Term Debt

Note 6. SHORT-TERM BORROWINGS AND CURRENT PORTION OF LONG-TERM DEBT

Short-term borrowings and current portion of long-term debt at December 25, 2011 and at December 26, 2010 consisted of the following:

(amounts in thousands)	December 25, 2011	December 26, 2010
Line of credit	$        —	$   1,808
Overdraft	405	—
Full-recourse factoring liabilities	8,809	13,065
Term loans	9,125	4,950
Revolving loan facility	—	386
Other short-term borrowings	2,529	—
Current portion of long-term debt	910	2,016
Total short-term borrowings and current portion of long-term debt	$ 21,778	$ 22,225

In December 2011, $4.2 million (HKD 32.5 million) was paid in order to extinguish our existing Hong Kong banking facility and other outstanding Hong Kong debt.  In December 2011, we entered into a new five-year Hong Kong banking facility.  The maximum availability under the facility is $8.9 million (HKD 69.0 million), and includes an $8.4 million (HKD 65.0 million) term loan and a $0.5 million (HKD 4.0 million) overdraft facility. The term loan bears interest at a rate of HIBOR + 2.75% and the overdraft facility bears interest at a rate of HKD Best Lending Rate + 2.00%. As of December 25, 2011, $8.4 million (HKD 65.0 million) was outstanding on the term loan. The banking facility is subject to the bank's right to call the liabilities at any time, and is therefore included in short-term borrowings in the accompanying Consolidated Balance Sheets.

In connection with the acquisition of the Shore to Shore businesses, the Company assumed debt of $4.2 million. As of December 25, 2011, $3.8 million related to the assumed debt remained outstanding. The debt assumed includes capital leases, accounts receivable factoring arrangements, term loans, an overdraft facility, and other short-term loans. With the exception of the capital leases, the banking facilities are subject to the banks' rights to call the liabilities at any time, and are therefore included in short-term borrowings in the accompanying Consolidated Balance Sheets.

In September 2010, $7.2 million (¥600 million) was paid in order to extinguish our existing Japanese local line of credit. The line of credit was included in short-term borrowings in the accompanying Consolidated Balance Sheets. In November 2010, we entered into a new Japanese local line of credit for $1.8 million (¥150 million). During the fourth quarter of 2011, our Japanese local line of credit of $1.9 million (¥ 150 million) was paid down.

During the first quarter of 2010, our outstanding Asialco loans of $3.7 million (RMB 25 million) were paid down.

In October 2009, the Company entered into a $12.0 million (€8.0 million) full-recourse factoring arrangement. The arrangement is secured by trade receivables. Borrowings bear interest at rates of EURIBOR plus a margin of 3.00%. As of December 25, 2011, the interest rate was 4.5%. As of December 25, 2011, our short-term full-recourse factoring arrangement equaled $8.8 million (€6.8 million) and is included in short-term borrowings in the accompanying Consolidated Balance Sheets. The full-recourse factoring arrangement was extended in December 2011 for a twelve month period.