Despite Freeze The Orchard Scores Credit Line

Digital distributor The Orchard has negotiated a secured revolving credit line with Palo Alto's Peninsula Bank Funding. Given the current international credit freeze, the bank's belief in the publicly traded company can only be viewed as a major vote of confidence.

"We intend to draw upon this credit facility as prudent to accelerate growth, and, where appropriate, to provide our artist and label clients with the capital they need to capitalize on this unique time in the evolution of the music business," said Greg Scholl, The Orchard's President and CEO.

The Orchard had fallen just $59,000 short of profitability with $3 million plus in cash on hand. But the company has since gone on a controlled search for assets including select artist and label advances and a bargain basement purchase of bankrupt indie label and distributor TVT.  The credit line could provide both the opportunity to continue the aquisition of assets at prices deflated by the down economy and a hedge against uncertain times.