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A CASE STUDY OF HAMPTON MACHINE

TOOL COMPANY (HMTC)


GROUP 3
Company Background

• Hampton Machine Company was established in 1915, a manufacturing


company engaged in providing automobile tools and military aircraft.

• HMTC was a well established company, had 64 years experience in machine


Tool Business (1915-1979).
• Mr. B.G. Cowins, 58 years old, President of the company, a widely respected,
energetic and successful. He was a successor to his father in law.
• HMTC has existing loan of U$ 1M with St. Loius Bank.
• HMTC is requesting for restructuring of its loan of U$ 1M plus applying for an
extension of loan amounting to U$ 350k.
• HMTC is requesting four month term (Sept. to Dec.) for the restructured loan of
U$ 1.35M.
• Monthly interest payment at 1 & ½ percent with approximately 18% annual basis.
• HMTC has no existing loan for the last ten years on its balance sheet prior
to this loan.
Company Background