Wang Restructures Agreements with Lenders
LOWELL, Mass. (AP) _ Wang Laboratories, Inc., said today it had successfully restructured its credit agreements with bank lenders, gained an additional $100 million in borrowing power and would make the debt payments it suspended last week.
In announcing the agreement, the company said it now had a total $575 million in outstanding indebtedness. It also said its agreements with lender banks would enable it to raise $175 million in working capital, with additional assets pledged as collateral.
″The company believes that this debt restructuring, together with the completion of the $175 million of additional secured financings, will provide the company with the financing required to meet its business plan,″ An Wang, founder and chief executive officer of the company, said in a brief statement.
Wang began renegotiating its lending agreements with banks after earlier this month announcing it had lost more than $300 million in the latest quarter.
Frederic Wang, Wang’s eldest son, has stepped aside as president of the company.
Wang said the company continues to explore sale of certain portions of the business, including domestic and international leasing subsidiaries.