Wang Labs won't receive IBM infusion; position complicates effort by minicomputer firm to shore up finances
Article Abstract:
IBM decides against an additional investment in the financially unstable Wang Laboratories Inc. Under the terms of a 1991 agreement, IBM invested $25 million in the minicomputer manufacturer, but because Wang has not met the terms of the agreement, IBM will not carry out its promise to invest an additional $75 million. The IBM move is another in a series of financial strains that Wang has had to endure as it attempts to resolve its financial situation, and industry observers believe that Wang will be forced to consider filing for Chapter 11 bankruptcy protection. Wang class B stocks lost 24 percent of their value in one day of trading, and other shares lost value as well. Under the Wang-IBM agreement, IBM invested $25 million and Wang agreed to market two IBM product lines and purchase IBM equipment. Wang was not able to earn sufficient revenue to perform its duties under the contract.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Wang Labs reorganization is cleared, allowing emergence from chapter 11
Article Abstract:
Wang Laboratories' reorganization plan has been confirmed by a bankruptcy judge, and the company is expected to emerge from bankruptcy protection after 13 months of government supervision. The company claims it is emerging from bankruptcy with a strong balance sheet and virtually debt-free. Wang claims it has managed to convert past debt into equity and received an 'infusion of new capital.' Wang plans to reshape itself as a smaller company, offering office software and services. The company will employ approximately 6,000 people and report a $25 million profit on about $941 million in revenue for the fiscal year ending Jun 30.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: IBM to start announcing its fall line. IBM announces minicomputer line with more power. IBM to unveil some models of AS/400 line
- Abstracts: Wang Labs plans more layoffs in wake of plan to sell computers made by IBM. Wang Labs to reduce work force 8%, take $30 million charge in 2nd period
- Abstracts: Wang Labs posted profit of $2.6 million in latest period, it first in 7 quarters
- Abstracts: Cray will unveil smaller version of supercomputer. Matsushita to use Sun technology in new machines. Sun Microsystems, Cray Research to share computer technologies
- Abstracts: Top Olivetti officer returns to active duty; De Benedetti takes reins from Cassoni to arrest computer firm's slide