Callaway Golf Company demanded and received a correction of an erroneous news report circulated by Bloomberg, the international financial news wire service.
The report erroneously stated that Callaway Golf failed to meet certain terms of its $120 million credit line because it “repurchased defective golf-ball equipment from its customers.” In fact, the Company reported in its 10-Q filed Thursday that it exercised its right to purchase the golf ball manufacturing equipment currently in use in its golf ball operation. The references in the Bloomberg report to “defective equipment” purchased “from its customers” were untrue. Bloomberg removed the erroneous report from wire four hours after posting it.
Further, Callaway Golf stated that it has not used the line of credit for more than three years, that it has no intention of using it and pointed out that it has in excess of $100 million in cash and no debt on its balance sheet.
