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WANG LABORATORIES UNVEILS PLAN OF REORGANIZATION

 LOWELL, Mass., March 16 /PRNewswire/ -- Wang Laboratories, Inc. (AMEX: QWAN.B, QWAN.C), today unveiled the plan of reorganization that management believes will successfully lead the company out of Chapter 11 protection and to profitability in fiscal year 1994. The plan was jointly filed with Wang's Creditors' Committee in the U.S. Bankruptcy Court in Boston.
 C. Hall Swaim, a partner in the law firm of Hale and Dorr, counsel to the Creditors' Committee in Wang's Chapter 11 case, said, "The plan of reorganization represents a significant milestone in the company's efforts to successfully emerge from Chapter 11. The business strategy that is the foundation of the plan has been reviewed by the committee, which is comprised of 13 members who are sophisticated and knowledgeable about the computer industry, and by its accountants, Price Waterhouse, and its financial advisors, Alex. Brown & Sons. We endorse and support Wang's strategy."
 Under the proposed reorganization, Wang's cost structure will be significantly reduced, and the company projects a return to profitability in fiscal year 1994. Wang will emerge from Chapter 11 free of a substantial portion of the structural burden and debt that impeded the company's previous efforts to restructure and regain profitability.
 Building on its strengths, the reorganized Wang will have a dual mission:
 -- to be a recognized leader in integrated imaging and related office software on industry-standard open systems, and
 -- to be a major worldwide provider of value-added network integration and support services, dedicated to office systems.
 Wang's competitive advantage in these areas stems from many years of office automation and imaging experience. Wang, which has approximately 1,000 imaging system installations, believes it has industry-leading technology. Wang now offers imaging on leading industry-standard platforms and is well-positioned to capture a significant share of this rapidly growing market.
 The market for network integration and support services is expected to experience significant growth. As one of the top Banyan and Novell network resellers, and with worldwide strengths in many vertical markets, such as the legal profession and government agencies, Wang believes it is well-positioned to capitalize on this opportunity.
 The reorganization plan is the result of a comprehensive examination of Wang's business and the markets in which it competes. The strategic thrust of the plan reduces Wang's reliance on proprietary systems and allows Wang to take greater advantage of the growing customer preference for open systems and client-server local area networked systems. Additionally, the plan recognizes the advantages in continuing to support and service Wang's substantial customer base.
 At the time of filing last August, Wang estimated that it would emerge from the reorganization with annual revenues in the range of approximately $1.3 billion to $1.4 billion and with approximately 8,000 employees. Revenues have been in that range thus far on an annualized basis for the current fiscal year. As a result of the actions being announced today, the company estimates it will end the year with revenues of approximately $1.25 billion to $1.3 billion. The refinement of the company's business strategy, combined with an anticipated decline of VS revenues, leads management to project revenues of approximately $1 billion in fiscal year 1994, which are expected to grow and to produce positive earnings and cash flow. The company will seek to fund anticipated cash requirements in the near term through a combination of internal financing, further sales of non-strategic assets, and external financing, as appropriate.
 The reorganized company will also require fewer people -- about 6,000 employees in all -- to carry out its strategy. The company currently employs approximately 9,300 employees. Although Wang intends to reach as quickly as possible the appropriate number of employees to carry out its strategy, the company has set no deadline for doing so. Approximately 50 percent of the reductions will be in the United States.
 Under Wang's reorganization plan, ownership of the company will be transferred to certain classes of creditors in satisfaction of their claims. Creditors holding priority claims, such as pre-petition wage claims by employees, certain customer claims, setoff claims, and secured claims will be paid in full or as agreed upon by the parties, or otherwise remain outstanding. All other claimants, including holders of the company's unsecured debt, debentureholders, and common stockholders, will be issued securities in the new reorganized company in settlement of their claims.
 Pursuant to the plan, all of the common stock in the reorganized Wang will be issued to general unsecured creditors, including debentureholders.
 The holders of Wang's current Class B and C common stock, who will be treated the same under the plan, will be issued seven-year warrants to purchase, on a fully diluted basis, 20 percent of the common stock in the reorganized company. The warrants will be exercisable at a price which will be set in such a manner as to allow the creditors who are issued common stock in the reorganization to recover 95 percent of their claims before the exercise price of the warrant equals the trading price of the common stock. It is anticipated that, when initially issued to creditors, the new common stock will be worth substantially less than 95 percent of the creditors' claims. Accordingly, the warrant value per share of presently outstanding Wang B and Wang C common stock is not expected to be more than a few cents at the time the warrants are initially issued.
 Mr. Swaim further stated, "This plan allows Wang to capitalize upon its leadership in integrated imaging and office software and in value- added network integration and support services for office systems. The essence of the plan is that the creditors will own substantially all the capital shares of Wang. This conversion of debt to equity eliminates all the unsecured debt and creates a very solvent corporation going forward, while giving creditors an opportunity to realize maximum value from Wang's technology and going concern value. We believe that this plan is in the best interests of all of Wang's various constituencies."
 In view of the filing today of the reorganization plan, Wang expects that officials of the American Stock Exchange (Amex) will closely monitor the appropriateness of continued listing of the current Class B and Class C common stock. Wang intends to continue discussions concerning the listing with officials of the Amex and of the other exchanges on which the Class B and Class C shares are traded. Wang is also planning on seeking a market quotation listing on an exchange or otherwise for the new common stock and warrants.
 Joseph M. Tucci, president and chief executive officer, said, "Our reorganization plan clearly defines the markets in which Wang will compete and allows us to shed the debt and outdated infrastructure that was hindering our progress. With the fresh start that Chapter 11 provides, we can accelerate our development and marketing of industry- leading imaging software for open systems and provide an unrivaled level of application coexistence and migration for VS customers. As part of this effort, we will continue to work with the leading vendors of UNIX and Intel-based hardware, such as IBM and Hewlett-Packard, and to resell their products to our customers."
 Wang remains committed to providing superior support to its VS customers. At the same time, the company recognizes that many VS customers want to coexist with, and migrate to, open systems. VS systems continue to deliver value to Wang's customers. To protect their investment, Wang has recently introduced the new VS 12000 series, complementary software products, and state-of-the-art, industry-standard peripherals products. These products, together with Wang's coexistence software and superior maintenance support, are expected to serve customer needs for many years, thus enabling them to plan an orderly transition to open systems as determined by the needs of their businesses.
 Wang's two strategic business thrusts -- integrated imaging and office software, and value-added network services -- will be managed through five worldwide business units: North America, Federal Systems, Europe, Asia, and Latin America/South Pacific. The company will streamline its corporate operation, focus development on open systems software, integrate its VS support and development resources, dramatically reduce its infrastructure, and discontinue its manufacturing operations. Wang will, however, continue to assemble and test VS products and secure systems products.
 The new Wang will not invest in the development, design, and manufacture of open systems hardware. As a result, capital investment, inventory, and warehousing requirements will be substantially reduced as products are routed from suppliers to customer. These changes will enable the company to sharpen its focus and provide better service to its customers.
 Wang will continue to serve customers in 130 countries. In some cases, it will do so by forming alliances with well-qualified local partners. Wang intends to reduce its costs, while at the same time ensuring that its customers continue to receive superior service worldwide.
 -0- 3/16/93
 /CONTACT: Frank Ryan, 508-967-7038, or Ed Pignone, 508-967-4912, both of Wang/
 (WAN)


CO: Wang Laboratories, Inc. ST: Massachusetts IN: CPR SU: RCN

GK-CK -- NY023 -- 6493 03/16/93 11:28 EST
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Date:Mar 16, 1993
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