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SHORT TERM BANK CREDIT AND LONG TERM LOANS (TAT Technologies Ltd [Member])
 12 Months Ended
Dec. 31, 2011
TAT Technologies Ltd [Member]
  
SHORT TERM BANK CREDIT AND LONG TERM LOANS
NOTE 11 -
SHORT TERM BANK CREDIT AND LONG TERM LOANS

 
a.
Terms of the loans and balances:
 
 
Currency
of loan
  
Interest Rate
December 31, 2011
  
Years of
Maturity
  
December 31,
2011
  
                 
Long-term loan (1)
NIS
  
5.25%
  
2012-2014
   $ 795  
Long-term loan (2)
$
  
2.50%-3.50%
  
(2)
     3,252  
Long-term loan (3)
NIS
  
Prime +1%
  
2013
     655  
                4,702  
                   
Less - current maturities (3)
               (282 )
                   
              $ 4,420  
 
 
Currency
of loan
  
Interest Rate
December 31, 2010
  
Years of
Maturity
  
December 31,
2010
  
                 
Long-term loan (1)
NIS
  
5.25%
  
2011-2014
   $ 1,204  
Long-term loan (2)
$
  
2.50%-3.50%
  
(2)
     6,250  
                7,454  
                   
Less - current maturities (1)
               (345 )
Less - current maturities (2)
               (6,250 )
                   
              $ 859  
 
Required principal payments (including current maturities) as of December 31, 2011, are as follows:
 
Year
  
Amount
  
2012
   $ 282  
2013
     3,310  
2014
     1,110  
    $ 4,702  

 
(1)
The original loan was received by Bental in 2009 from an Israeli bank the amount of $1,400 to be repaid in quarterly installments over a five years period, commencing 2010.  On June 30, 2010, the entire original loan was repaid and a new loan in the same amount was taken. This new loan bears annual fixed interest of 5.25% and will be repaid until August 2014 in a quarterly installments (with regard to covenants related to such loan see note 13(f)(3)).

 
(2)
Loans received by TAT from an Israeli bank in a total amount of $6,250 out of which $5,000 were received during year 2008 and additional $1,250 were received during year 2009. The loans amount was to be repaid in four annual installments commencing 2011. These loans bear quarterly interest of Libor + 3.5% and Libor + 1.85%, respectively. In May 2011, TAT repaid $750 of principal, in accordance with the original installments schedule. On November 7, 2011, TAT prepaid $2,250, following which the remaining balance was $3,252. In September, 2011, TAT reached agreement with its lending bank to adjust certain financial covenants related to the said loans it was failing to meet at the time. Accordingly, as of December 31, 2011 the Company meets all financial covenants related to such loans (see also note 13(f)(2)).

 
(3)
On September 7, 2011, Bental received a loan from an Israeli bank in a total amount of NIS2.5 million (approximately $700), to be repaid in whole at the end of a 24 month period (the "Term"). The principal amount bears interest of Prime +1% payable on a quarterly basis and may be repaid at any time during the term upon Bental's discretion (see also note 10(i)).

 
(4)
In addition, as of December 31, 2011 Piedmont's bank credit balance amounted to $294.

TAT provided certain guarantees and covenants, to secure its long-term loans, see note 13e.

 
b.
Line of credit

On November 15, 2011, Limco-Piedmont renewed its line of credit with a U.S bank for an additional 21 month period ending on August 31, 2013, for borrowings of up to $10,000 under certain conditions. $5,000 of this amount will stand for Limco and $5,000 will stand for Piedmont. The line of credit bares interest of Libor + 1.5%, and its utilization is subject to compliance with financial covenants agreed between the parties. As of December 31, 2011, approximately $4,340 of the total line of credit was utilized by Limco and Piedmont. In addition, as of December 31, 2011 the Limco-Piedmont meets all financial covenants related to such line of credit (see also note 13(f)(1)).