New loans helps Tastykake avoid expiration

A Philadelphia icon is safe for now thanks to some new financing.

A new loan package totaling $6.5 million has been put together to help Tastykake through it’s current financial trouble.

 

The lending to the South Philadelphia baker breaks down this way: $2 million from the Philadelphia Industrial Development Corporation, $1 million from the state of Pennsylvania and$3.5 million from a group of accredited investors.

 

The deal also includes an agreement with the company’s banks to defer until June 30th principal payments on existing loans.

 

The agreement requires Tasty to pursue a sale or merger by the end of June.

 

Tasty Baking head Charlie Pizzi says the company is working towards the best outcome possible for its investors and customers.

 



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