Quadrax reopens with cut work force
But continuing cash woes may force bankruptcy filing
By NEIL DOWNING
Journal-Bulletin Staff Writer
Quadrax Corp. of Portsmouth reopened as scheduled this week after an abrupt three-week shutdown -- but with only a limited work force and its fate is still uncertain.
''We've reopened on a limited basis, and we're working with a fractional capacity to fulfill specific customer orders,'' Alon D. Kutai, Quadrax director of investor relations, said in a brief telephone interview yesterday.
The company reopened Monday, as scheduled.
Quadrax, faced with mounting financial problems, issued a brief statement Dec. 12 saying that it would close for three weeks and suspend operations to conserve cash while executives tried to work out a rescue plan.
At the time, Quadrax said executives would ''continue to seek financing from outside sources and [would] evaluate restructuring alternatives for the business.''
The company also issued this caution at the time: ''There can be no assurance that the company will be successful in obtaining additional financing or in implementing a restructuring of its business, and, if it is not successful, the company may be required to seek reorganization under the United States Bankruptcy Code.''
Asked about this yesterday, Kutai said, ''The company continues to evaluate its options regarding financing.''
He declined to elaborate. He also declined to say how many workers the company normally has or how many are currently working. (In a document filed with the U.S. Securities and Exchange Commission in October, Quadrax said it had 61 employees.)
However, Kutai said the company expected to make an announcement within several weeks.
Quadrax, whose stock is publicly traded, makes specialized plastics that are used in shafts for hockey sticks, golf clubs and lacrosse sticks.
Quadrax stock closed yesterday at about 9 cents a share, unchanged in Nasdaq ''small-cap'' market trading.
Quadrax stock reached as high as 50 cents a share in October, according to daily closing prices posted by Bloomberg News.
But since then, the stock price has drifted lower. And on Dec. 15, the first trading day after the company announced its shutdown, Quadrax stock lost more than two-thirds of its market value in one day: it closed at about 8 cents a share, down from 25 cents a share. The stock has traded in that general range ever since, according to daily Bloomberg closing prices. |
