And, on October 28, 1998, Syquest ceased business operations . . .
Here's the 8K filed today. Note what I've put in bold.
INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events
REDUCTION OF CREDIT LINE AND STATUS OF STRATEGIC DISCUSSIONS
As of September 30, 1998, the Company was not in compliance
with the financial covenants contained in its loan agreement with
Greyrock Business Credit ("GBC"), the Company's asset-based
lender. GBC waived the default, but reduced the Company's credit
line from $30 million to $10.75 million. Currently, the Company
has no availability under its reduced credit line for additional
borrowing and no other credit lines or sources of significant
debt financing. The Company is seeking additional financing from
another source, but there can be no assurance that such financing
will be available. The Company has been obliged from time to
time to cut back or discontinue certain vital business
activities, such as marketing, shipping, advertising, production
of new inventory, purchase of raw materials, and research and
development.
In recent weeks, the Company has been in negotiations with
certain of its investors to reach agreement on a series of
transactions that would make an additional $13 million available
to the Company. The transactions have not closed, and it is
unlikely that they will close unless the Company is able to
secure additional substantial lines of credit or debt financing.
Even if the Company were successful in securing additional lines
of credit or sources of debt financing, there can be no assurance
that the $13 million would still be available to the Company.
In an earlier press release, the Company disclosed that it
had retained CIBC Oppenheimer as its investment banker to assist
in attempting to restructure its capital accounts, raise
additional financing, and advise the Company with respect to
acquisitions or strategic alliances, among other things. While
many discussions have taken place, to date none have led to any
firm proposals. Discussions are continuing, but there can be no
assurance that they will reach a successful conclusion, or that
if successfully concluded they would lead to any benefits to
existing or potential shareholders.
Unless the Company is able to obtain sufficient financing or
secure a strategic alliance, the Company will not be able to
continue funding its operations. |
