appears the government wants OIS back to work ......
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Wednesday September 30, 9:12 pm Eastern Time
OIS Optical preparing response to U.S. government
DETROIT, Sept 30 (Reuters) - OIS Optical Imaging Systems Inc. (Nasdaq:OVON - news)
president Rex Tapp said Wednesday the company was preparing a response to a U.S.
government order to resume production of flat panel screens used for military vehicles.
''We received the Commerce Department's directive and are currently reviewing it and preparing a response,'' Tapp said in a
telephone interview.
OIS stopped production and laid off 220 employees on September 18 after it was unable to find either new investors or a
buyer and its major shareholder, Guardian Industries Corp., said it would not invest further in the company.
On Monday, the Commerce Department ordered OIS, which is based in Northville, Mich., to fulfill its contracts and provide
flat panel displays. The order was made under the Defense Production Act and the Selective Service Act.
The Commerce Department said in a statement OIS was the only qualified U.S. manufacturer of the high-resolution flat panel
screens used in such U.S. military systems as the Apache attack helicopter, F-16 advanced fighter aircraft and M-1 Abrams
tank.
It gave OIS until Wednesday to, ''demonstrate that it will be able to perform its contractual obligations to supply these items'',
but Tapp said the department has given the company additional flexibility.
The Commerce Department said a group of defense contractors who use the OIS display panels has agreed to fund the
operating costs of the OIS plant, while the company moves to restructure or transfer the business.
''Commerce's order is contingent upon the availability of that funding for OIS,'' the department said in the statement. ''Civil
injunctions or criminal penalties may be imposed for failure to comply with the order.''
OIS shares finished Wednesday at 3/32, down 1/32 on the Nasdaq stock market. |
