DDL Electronics records $2.5 million gain for reduction of retirement obligations.NEWBURY PARK, Calif.--(BUSINESS WIRE)--April 8, 1996--DDL Electronics Inc. (NYSE NYSE See: New York Stock Exchange :DDL (1) (Data Description Language) A language used to define data and their relationships to other data. It is used to create the data structure in a database. Major database management systems (DBMSs) use a SQL data description language. ) Monday announced that it has successfully restructured its unfunded retirement obligations under several post-employment benefit plans covering certain former officers, key employees and directors. As the result of the settlement agreement reached on March 29, 1996 with the participants in these benefit plans (the "participants"), DDL recorded an extraordinary gain of approximately $2,550,000 and has reduced its liabilities by a corresponding amount. In commenting on the debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: , DDL President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Gregory L. Horton stated, "This settlement represents a major milestone in DDL's ongoing efforts to improve its balance sheet and increase shareholder value." Under terms of the settlement, the participants agreed to relinquish all future payments due them under these benefit plans in return for 600,000 stock purchase warrants. The warrant exercise price will be equal to the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. closing price of DDL's common stock on May 31, 1996 minus $1.50, subject to a minimum exercise price of $2.50 and a maximum exercise price of $6.00. DDL will subsidize the exercise of warrants by crediting the participants with $2.50 for each warrant exercised. The warrants may be called for redemption by the company at any time after June 1, 1996 if DDL's common stock closes above $4.00 per share, at a redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. of 5 cents per warrant. DDL is obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to pay the participants $2.50 for each warrant which remains unexercised on the June 1, 1998 warrant expiration date, payable in semiannual installments over two to 10 years. DDL Electronics, with headquarters in Newbury Park, provides customized, integrated electronic manufacturing services to original equipment manufacturers (OEMs) in the computer, telecommunications, instrumentation, medical, industrial and aerospace industries. CONTACT: DDL Electronics Inc. Rick Vitelle, 805/376-2595 |
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