Schutt Sports continues to work with the city of Litchfield, IL, on ways to keep the sports equipment maker headquartered in that town.
According to a report in the Journal-News, Hillsboro, IL, one hurdle to a deal pertains to the security on a $5.3 million, ten-year loan the town would provide to Schutt for an expansion of its distribution center. The city is demanding a first lien holder position on the new addition. But Bank of America has first position on all of Schutt's current assets and any future assets that may materialize. Litchfield has so far rejected the offer of having a second position.
The other obstacle are the 301 jobs Schutt has promised to provide over the ten year term of the loan. Litchfield's economic board believes only full-time jobs should count while Schutt contends that part-time jobs should also be counted. Schutt and Litchfield have been working on an agreement for almost a year.