Printer Friendly

WANG UPDATES PROGRESS UNDER CHAPTER 11

 WANG UPDATES PROGRESS UNDER CHAPTER 11
 LOWELL, Mass., Sept. 24 /PRNewswire/ -- Richard W. Miller, chairman


and chief executive officer, today highlighted the progress which Wang Laboratories, Inc. (AMEX: WAN.B, WAN.C), has made since filing for protection under Chapter 11 of the U.S. Bankruptcy Code on Aug. 18. In a letter sent to approximately 4,000 Wang customers worldwide, Mr. Miller cited "the tremendous outpouring of good wishes and support that we have received from our various constituencies around the world."
 Mr. Miller said, "Many of our customers, vendors, and business partners have reached out to express their understanding of the obstacles we have faced and their continuing commitment to our business relationship.
 "New orders for VSs, RISC Series, PCs, LANs, AS/400s, Imaging and Services are continuing to flow in -- at a lower rate than a year ago, but at a rate that we find acceptable and encouraging.
 "Our vendors are full partners in our efforts to provide the highest quality products and services to our customers. I am pleased to report that most are now extending some type of credit to us and that we are seeing those credit arrangements improve week by week. This is good news for Wang customers and we are most grateful to our vendors for this commitment to our future.
 "I am pleased to report that our cash flows have been satisfactory since the filing, with our cash balances steadily building and exceeding our forecast. We are continuing to talk with lenders about financing, but our strong cash balances have enabled us so far to finance our needs internally. We still plan to put new financing in place, but we have set no deadline for doing so."
 On Aug. 18, the company projected that its restructuring would reduce its employment levels by approximately 5,000 to about 8,000 employees worldwide. Mr. Miller explained that Wang's objective is to complete as much of the reduction as soon as legally and commercially possible.
 "We estimate that by month-end, we will be down to approximately 11,000 employees, with most of the reductions to date in the United States. Some reductions have been temporarily delayed to assure compliance with local regulations and to meet customer commitments. Under the circumstances, we have made good progress and our customers have reacted favorably," Mr. Miller said.
 The company also said that it expects to restate results for the fiscal year that ended June 30 to reflect additional restructuring charges as a result of the Chapter 11 filing. The company said that these charges could be substantial and result in a sizable loss for the prior fiscal year.
 In commenting on the Chapter 11 process, Mr. Miller said, "The legal proceedings related to our Chapter 11 filing have progressed satisfactorily. We will be working closely with the creditors' committee over the next few months. As our business stabilizes after the shock of the Chapter 11 filing, we will complete our business plan which will become the basis for our plan of reorganization. It is still too early to know how long that process will take, but we are encouraged by the fact that all parties understand the importance and benefits of working diligently together."
 -0- 9/24/92
 /CONTACT: Frank Ryan, 508-967-7038, or Ed Pignone, 508-967-4912, both of Wang Laboratories/
 (WAN) CO: Wang Laboratories, Inc. ST: Massachusetts IN: CPR SU: BCY


GK-OS -- NY023 -- 3030 09/24/92 10:51 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 24, 1992
Words:573
Previous Article:UNISYS DECLARES PREFERRED STOCK DIVIDENDS
Next Article:MOTOROLA AND ALEXANDER ANNOUNCE SETTLEMENT
Topics:


Related Articles
WANG LABORATORIES FILES UNDER CHAPTER 11; REPORTS FOURTH QUARTER, FISCAL YEAR RESULTS; NOON NEWS CONFERENCE IN CAMBRIDGE, MASS.
WANG ANNOUNCES ORGANIZATIONAL CHANGE TO SUPPORT CHAPTER 11 RESTRUCTURING
MICRONICS COMPUTERS ANTICIPATES FOURTH-QUARTER RESULTS TO BE BELOW EXPECTATIONS
WANG ANNOUNCES ADDITIONAL ACTION TO SUPPORT CHAPTER 11 RESTRUCTURING
WANG ANNOUNCES ACTION TO SUPPORT CHAPTER 11 RESTRUCTURING
WANG CREDITORS' COMMITTEE SUPPORTS MANAGEMENT'S PLANS
WANG LABORATORIES REPORTS FINAL FOURTH-QUARTER, FISCAL-YEAR RESULTS
WANG LABORATORIES REPORTS FIRST-QUARTER RESULTS
WANG LABORATORIES TO FILE PLAN OF REORGANIZATION
WANG LABORATORIES UNVEILS PLAN OF REORGANIZATION

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters