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At December 3 1 , 2 0 2 4 , Cordova Leather s liabilities include the following: $ 1 5 . 4 million of noncallable

At December 31,2024, Cordova Leathers liabilities include the following:
$15.4 million of noncallable 8% notes were issued for $15.4 million on August 31,1994. The notes mature on July 31,2025. Sufficient cash is expected to be available to retire the notes at maturity.
$30.4 million of 7% notes were issued for $30.4 million on May 31,2014. The notes mature on May 31,2027, but investors have the option of calling (demanding payment on) the notes on June 30,2025. However, the call option is not expected to be exercised, given prevailing market conditions.
$18.4 million of 9% notes are due on March 31,2026. A debt covenant requires Cordova to maintain current assets at least equal to 150% of its current liabilities. On December 31,2024, Cordova is in violation of this covenant. Cordova obtained a waiver from Village Bank until June 2025, having convinced the bank that the companys normal 2 to 1 ratio of current assets to current liabilities will be reestablished during the first half of 2025.

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