Unisys posts $98.2 million loss, says loan may need to be redone; pact's net worth provision could be broken soon with another deficit
Article Abstract:
Unisys Corp's 1st qtr 1991 financial report reflects a loss of $98.2 million or 79 cents per share, as compared to a $3.2 million or 19 cents per share loss for the same period in 1990. This results in a decline in the computer manufacturer's net worth to $3.6 billion. The credit agreement Unisys has with several banks requires that the company maintain a net worth of at least $3.5 billion. If the net worth falls below that level, the computer company could experience significant problems with its lenders. Thus, while industry analysts expect the banks to be tolerant for several quarters, it is possible Unisys will need to renegotiate the agreement at some point. Unisys has plans to lay off more employees and close additional facilities in 1991 as it struggles to contain costs, reduce its debt and return to profitability.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Unisys posts loss of $75.8 million for third quarter
Article Abstract:
Unisys Corp reports a loss of $75.8 million for the 3rd qtr of 1991. The loss, which comes out to 66 cents per share, was the result of an 18 percent drop in revenue and the continuing problem of a heavy debt load. The 3rd qtr 1991 loss is less than the loss for the same period in 1990, which was $356.8 million or $2.42 a share. Unisys said that its sale of assets for the current quarter generated $250 million, which helped cut its debt by $400 million. The computer maker still has $3.43 billion in debt. Unisys stock closed at $4.25 a share on Oct 21, 1991, down 12.5 cents a share for the day.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Comment about this article or add new information about this topic:
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