CirTran Finalizes New Forbearance Agreements and Loan Repayment Schedules
SALT LAKE CITY, March 28, 2012 -- CirTran Corporation (OTCBB: CIRC), an international contract manufacturer of consumer products including energy beverages, said today it has entered into two new Forbearance Agreements, which are included as exhibits to its Current Report on Form 8-K filed with the Securities and Exchange Commission.
CirTran said that an amended Forbearance Agreement with YA Global Investments, L.P. of Jersey City, N.J., includes a loan repayment schedule that started this month and extends through March 2014. The agreement relates to debentures issued by CirTran to YA Global, formerly Cornell Capital Partners, LP, with an aggregate current outstanding balance of approximately $4.0 million.
CirTran also announced a new Forbearance Agreement with Advanced Beauty Solutions, LLC (ABS) of Los Angeles, continuing a business relationship that began in 2005 and which includes the purchase of certain ABS assets in mid-2006 including True Ceramic Pro flat iron and hair dryer kits marketed and sold via TV infomercials. The restructured agreement calls for payment from CirTran to ABS through 2016.
“These agreements bode well for CirTran, now and in the coming years,” said Iehab J. Hawatmeh, the company’s chairman and president. “We particularly value the backing we have had for years from YA Global and its management team, and appreciate the confidence in our evolving business plan and growth.”
About CirTran Corporation
Founded in 1993, CirTran Corporation (www.cirtran.com) has evolved from its roots as an international, full-service contract manufacturer. From its headquarters in Salt Lake City, Utah, where it operates, along with its Racore Technology (www.racore.com) electronics manufacturing subsidiary, from an ISO 9001:2000-certified facility, CirTran has grown in scope and geography. Today, CirTran’s operations include: CirTran-Asia, a subsidiary with principal offices in ShenZhen, China, which manufactures high-volume electronics, fitness equipment, and household products for the multi-billion-dollar direct response industry; CirTran Online, which offers products directly to consumers through major retail web sites; and CirTran Beverage, which has partnered with Play Beverages, LLC, to introduce and distribute the Playboy Energy Drink.
This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement. CirTran disclaims any obligation or intention to update any forward-looking statement.