Horizon Technology Finance Successfully Exits Investments In Xtreme Power

(RTTNews) - Horizon Technology Finance Corp. (HRZN) said Monday that, in connection with the United States Bankruptcy Court-approved sale of substantially all of the assets of Xtreme Power, Inc., Horizon has successfully exited its investment in Xtreme.

The United States Bankruptcy Court for the Western District of Texas approved the sale of substantially all of the assets of Xtreme. In connection with the sale, Horizon has received cash proceeds of $9.9 million. Horizon applied $2.8 million of the proceeds to fully reimburse the debtor-in-possession financing it provided to Xtreme in the first quarter of 2014 and applied the remaining $7.1 million of proceeds to fully pay off Xtreme's venture loan balance, including fees and expenses.

For the quarter ended March 31, 2014, Horizon expects to reverse about $1.3 million in previously recorded unrealized depreciation on its loan investment in Xtreme. As of December 31, 2013, the loan was on non-accrual with a cost of $6.0 million and fair value of $4.7 million.