Printer Friendly

EMERSON RADIO LENDERS WILLING TO CONTINUE NEGOTIATIONS

 EMERSON RADIO LENDERS WILLING TO CONTINUE NEGOTIATIONS
 NEW YORK, July 2 /PRNewswire/ -- Emerson Radio Corp. (NYSE: EME)


today reported that its lenders have notified the company of their willingness to continue to negotiate a restructuring of Emerson's outstanding debt despite the June 30, 1992 expiration of the term sheet and lender commitments for the debt restructuring announced by the company on May 28, 1992.
 Emerson stated that its bank lenders have informed it in a letter received today that, while they have decided "not to extend the June 30th closing date ... the banks recognize that stability is in the best interests of all the various Emerson constituencies and are willing to continue discussions with Emerson in order to formalize and restructure whatever discretionary lines of credit may exist in accordance with the term sheet and draft credit agreement."
 Emerson recently reached an agreement with its largest shareholder, Fidenas Investment Limited, under which, among other things, the proxy contest between Emerson and Fidenas was terminated and Fidenas' slate of nominees to form a new board of directors at Emerson will run unopposed at the annual meeting of shareholders on July 7, 1992. Fidenas also agreed to use its best efforts to assist Emerson in completing its debt restructuring as well as, subject to certain conditions, invest up to $32.5 million of new equity capital into the company.
 Emerson said that the banks' letter goes on to request that, in light of the impending change in Emerson's board of directors and chief executive officer on July 7, 1992, "...it is extremely important that the banks have an opportunity to become more familiar with the new members of Emerson's board and Emerson's new management team...The banks are prepared to meet with the new management team at Emerson's earliest convenience to begin this evaluation..."
 Emerson noted that, although the lending banks have indicated their willingness to continue to negotiate a restructuring of Emerson's debt, if such a restructuring is not accomplished, or if the lenders were to demand immediate payment of the outstanding debts, Emerson would not be able to meet its obligations.
 Emerson stated, "Accordingly, as requested by the bank lenders, Emerson's new management plans to meet with the company's lenders as soon as practicable after the July 7th shareholders meeting to work towards completing the debt restructuring."
 Emerson Radio Corp. designs and markets a full line of popularly priced consumer electronics products. The range of the company's products includes televisions, video cassette recorders, portable compact disc player, radios, stereo systems, tape players and recorders, and microwave ovens.
 -0- 7/2/92
 /CONTACT: Robert D. Siegfried of Kekst and Company, 212-593-2655, for Emerson/
 (EME) CO: Emerson Radio Corp. ST: New Jersey IN: CPR SU: RCN


KD-LR -- NY074 -- 6366 07/02/92 17:31 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:Jul 2, 1992
Words:463
Previous Article:STANDARD & POOR'S STOCK PRICE INDEX -- CLOSING, THURSDAY, JULY 2
Next Article:PENNDOT ANNOUNCES LANE CLOSURES ON AREA HIGHWAYS SCHEDULED NEXT WEEK
Topics:


Related Articles
EMERSON RADIO REPORTS RESULTS
EMERSON RADIO AND SEMI-TECH (GLOBAL) LIMITED ANNOUNCE AGREEMENT
EMERSON RADIO REPORTS RESULTS
EMERSON RADIO CHARGES FIDENAS INVESTMENT WITH SECURITIES VIOLATIONS
EMERSON RADIO ANNOUNCES COURT RULING
EMERSON RADIO RESPONDS TO INQUIRIES ON LEGAL ACTION
EMERSON RADIO FILES EMERGENCY COURT APPEAL
EMERSON RADIO PROXY CONTEST SETTLED
EMERSON RADIO CHARGED WITH BREACH OF OBLIGATIONS, FAILURE TO MAKE PAYMENTS AND COERCION
Emerson Radio Corp. and ADCOM, LLC Announce Agreement in Principle to form Joint Venture.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters