Note 11 - Debt

12 Months Ended

Sep. 30, 2011

11. DEBT

Credit Facilities

U.S. Operations – The Company’s U.S. subsidiary has a credit facility with a U.S. bank, the term of which expires January 1, 2012. There were $8.4 million in borrowings as of September 30, 2011, with $1.6 million of availability. There are no financial covenants associated with this facility.

Hungarian Operations – The Company’s Hungarian subsidiary has a credit facility with a Hungarian bank, which expires December 30, 2011. The overdraft facility has a total commitment of the lesser of 1.9 billion HUF ($9.0 million as of September 30, 2011) or a borrowing base ($5.5 million as of September 30, 2011). There were no borrowings under this credit facility at September 30, 2011. There are no financial covenants associated with this facility.

The Company intends to extend its existing lines of credit before their expiration on January 1, 2012 and December 30, 2011, respectively. Based on the history of relationships with its banks and its current financial position, the Company expects it will be able to successfully extend its lines of credit.

Credit lines consist of the following (amounts in thousands):

	September 30, 2011		September 30, 2010

U.S. facility (current interest rate of 3.0% - variable with Libor)	$	8,394	$	-
Hungarian facility	$	-	$	-
Total credit lines	$	8,394	$	-

The Company’s long-term debt consists of the following (amounts in thousands):

	September 30, 2011		September 30, 2010

Note payable with interest currently at 4.1% (variable with Libor, payable in monthly installments of interest and principal to maturity in January 2011)	$	-	$	981
Total long-term debt including current maturities		-		981
Less: Amounts payable within one year		-		(981	)
Total long-term debt, less current maturities	$	-	$	-