Simple Problem Here - Management's CredibilityIn all likelihood the auditors performing their year-end preliminary review questioned the fair market value of the inventory. Rather than come clean in the press release, the young management decided to spin the news. Writing-off and selling the old inventory was presented as a positive for the future. The bank didn't view it that way and cut their line (the accordian) and increased their rates. When management decides to spin the market it's time to replace them.