Magnetek could survive judgment.Seven months after facing possible bankruptcy, Magnetek Inc. may have collected enough financing to rebound from a $23.4 million arbitration award An arbitration award (or arbitral award) is a determination on the merits by an arbitration tribunal in an arbitration, and is analogous to a judgment in a court of law. . It might even get the award thrown out. But it's going to cost. Two months ago, the Chatsworth-based manufacturer of electronics products signed an agreement with lenders for an $18 million term loan and a $13 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. In filings with the Securities and Exchange Commission, Magnetek said it had "adequate resources to support payment of the award" but that it would boost debt and interest expense in the process. In May, an arbitrator had ordered Magnetek to pay the award to an inventor who had claimed that the company's fluorescent lamp fluorescent lamp Type of electric discharge lamp consisting of a glass tube filled with a mixture of argon and mercury vapor. A current of electricity causes the vapor to produce ultraviolet radiation that, in turn, excites a phosphor coating on the inside of the tube, electronic ballasts infringed on his patents. As part of the arbitration agreement, Magnetek was supposed to pay the award within 10 days--a timetable that forced company officials to consider filing for bankruptcy protection. The award, which could not be appealed, was considered final and binding. The day the award was announced, the stock plummeted 44 percent. Later that month, the company reported a third quarter net loss of $24.6 million. "We met with them shortly after this and they told us they would have the ability to pay, but they would have to raise the funds or sell assets," said Raymond Nimrod Nimrod, in the Bible, descendant of Cush who is recorded as a mighty hunter. Nimrod Biblical hunter of great prowess. [O.T.: Genesis 10:9; Br. Lit.: Paradise Lost] See : Hunting , a Chicago partner at Jenner & Block LLP LLP - Lower Layer Protocol who represents the inventor, Ole K. Nilssen. A research report released by Stephens Inc. analyst Todd Cooper Todd Cooper (born June 25, 1983 in Kidderminster) is a freestyle and butterfly swimmer from England, who competed at the 2004 Summer Olympics in Athens, Greece. There he finished in 22nd position in the 100m Butterfly. concluded that paying the award would leave limited remaining financing available. But Magnetek may have one more legal strategy up its sleeve. The company has told a judge in U.S. District Court, Northern District of Illinois, that the award should be tossed out altogether "on grounds it was fraudulently obtained," according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the company's SEC filings. Lawyers for Nilseen want the award retained. The judge has yet to give a final decision on that motion. |
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