Printer Friendly

WANG TO SEEK COURT ACTION TO SUPPORT CHAPTER 11 RESTRUCTURING

 WANG TO SEEK COURT ACTION TO SUPPORT CHAPTER 11 RESTRUCTURING
 LOWELL, Mass., Sept. 17 /PRNewswire/ -- Wang Laboratories, Inc. (AMEX: WAN) announced today another step in the implementation of its worldwide restructuring program. The program, when fully implemented, is expected by management to return Wang to profitability and to enable a successful and timely emergence from the Chapter 11 protection which the company obtained on Aug. 18.
 On Friday, Sept. 18, Wang will ask the U.S. Bankruptcy Court for authority to terminate approximately 118 unexpired leases which the company now has for various facilities throughout the United States. The company will reduce its annual rent expenses by approximately $35 million as a result of this action.
 The company stressed that its action will not impair its ability to service and support its customers or to manufacture its products. Wang will continue to do business in virtually all of the metropolitan areas involved by consolidating its operations into other Wang facilities, by moving into smaller, less expensive space, or by negotiating new, less expensive leases with its current landlords. The facilities involved are either underutilized, leased at rates above the current market or both.
 At a later date, Wang will also ask the court for authority to terminate approximately 85 additional unexpired leases, an action which could result in an additional rent expense reduction of $10 million. No hearing date has been set for this motion.
 Michael F. Mee, executive vice president and chief financial officer, said, "By taking this action, we maintain our current ability to provide our customers with quality products, service and support. At the same time, we can reduce our expenses significantly, thus advancing our return to profitability and emergence from the Chapter 11 process as a smaller, more focused, and more competitive company. As a result, this action further strengthens our ability to serve our customers' needs in the long-term."
 The U.S. Bankruptcy Code permits a company under the protection of Chapter 11 to reject any unexpired lease with the court's approval.
 -0- 9/17/92
 /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: RCN


SM-PS -- NY025 -- 0516 09/17/92 10:02 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 17, 1992
Words:373
Previous Article:UNICORP AMERICAN CORPORATION EFFECTS NAME CHANGE AND REVERSE STOCK SPLIT
Next Article:NEW DEFENSE BUDGETS WILL REFLECT NEW ROLE FOR ELECTROTECHNOLOGY
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
WANG ANNOUNCES ADDITIONAL ACTION TO SUPPORT CHAPTER 11 RESTRUCTURING
WANG ANNOUNCES ACTION TO SUPPORT CHAPTER 11 RESTRUCTURING
ALAN FRIEDMAN NAMED WANG VICE PRESIDENT
WANG CREDITORS' COMMITTEE SUPPORTS MANAGEMENT'S PLANS
WANG LABORATORIES REPORTS FINAL FOURTH-QUARTER, FISCAL-YEAR RESULTS
WANG LABORATORIES SEEKS ADDITIONAL 90 DAYS TO FILE REORGANIZATION PLAN; CREDITORS' COMMITTEE SUPPORTS REQUEST
WANG LABORATORIES REPORTS FIRST-QUARTER RESULTS
WANG LABORATORIES UNVEILS PLAN OF REORGANIZATION

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