Wang rejects debt pact, halts some payments; surprise moves heighten concerns of investors; stock falls 50 cents to $6
Article Abstract:
Wang Laboratories Inc will default on almost $1 billion in debt in an attempt to loosen itself from financial problems. Wang had been involved in negotiations with Bank of Boston Corp, trying to restructure its debt package, but Wang officials refused to sign the agreement. The computer company posted a loss of $424.3 million in its fiscal year ended Jun 30, 1989. In light of Wang's financial problems, Pres Frederick C. Wang resigned, but will remain a director of the company. There is no obvious choice for a replacement for Wang, who is a son of An Wang, the company's 69-year-old founder. Wang Labs did not identify which creditors would not be paid, but reported that suppliers and employees would continue to be paid on schedule. Analysts suggest that Wang cannot continue to default and expect to recover. Wang Lab's stock, although heavily traded on the American Stock Exchange, fell to $6.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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Wang Labs unveils debt restructuring, can begin to deal with other crises
Article Abstract:
Wang Laboratories reaches an agreement with its banks on debt restructuring that covers $575 million in loans. In return, Wang pledges all assets except inventories to its lenders. A settlement reached a week earlier was rejected by the company and interest payments were stopped in an attempt to force less strenuous terms from the banks. The new agreement lets Wang use collateral to raise $175 million of working capital. The interest rates or other conditions in the agreement were not made public. Other crises still face the company beside being highly leveraged. Wang's position in the computer industry continues to worsen, two more qtrs of losses are predicted and the search for a new president continues.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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Wang agreement to restructure debt is expected to be announced today
Article Abstract:
Wang Laboratories will announce that it has finally restructured its loan agreement with its banks, led by Bank of Boston Corp. Wang, which has recently lost $424.3 million for fiscal year ended Jun 30, 1989, has been trying to reach an agreement to restructure a debt of $962 million. Details of the agreement were not available, but those familiar with the negotiations said it will cancel violations Wang has made on its existing credit agreement, caused by the significant decline in Wang's net worth. Wang's new agreement has been difficult to establish. European buyers of Wang's commercial paper began to hesitate at refinancing, motivating Wang to pursue a new bank line.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
User Contributions:
Comment about this article or add new information about this topic:
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