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To: Stitch who wrote (2397)	1/29/1998 7:12:00 AM
From: Stitch	Respond to of 9256

To: All, Some topical news from STMD: StorMedia in default on credit facility SANTA CLARA, Calif, Jan 28 (Reuters) - StorMedia Inc said it is currently in default on its credit facility and is in active talks with the bank group to cure such defaults. It said it is currently reviewing additional debt or equity financing alternatives. The company reported a net loss per share of $3.02 for the quarter ended December 31, 1997,including $40 million of pre-tax charges for closure of some manufacturing operations and other adjustments, including a $13.4 million write-off for closure of Singapore Technologies' Micropolis facility. Stormedia had been a supplier to Micropolis, which had accounted for about 19 percent of total net sales for the quarter ended September 26. Stormedia said it also reduced its workforce in Singapore taking a $1 million charge for severance and has also taken a $20 million write down of certain assets and a charge related to obsolete inventory. Due to Stormedia's December 31 acquisition of Akashic Memories Corp, it has facilities in the U.S. and Southeast Asia that are currently idle and is actively seeking to sell these assets. IT said it has been approached by parties interested in acquiring these operations.