Zenith Breathes A Little Easier
Zenith Electronics' financial picture may be brightening. The company says it has lined up an unnamed lender for a three-year, $60 million working capital agreement by pledging its accounts receivable as collateral. The new credit line will replace one that was secured by all of Zenith's patents and trademarks and 65% of its Mexican and Canadian operations.
To give itself some much-needed breathing room, the company also has filed a registration statement to sell 8 million shares. With its stock now trading around 7, the new shares could raise a welcome $56 million--if they can find buyers. Zenith lost $43.8 million in the first half, and had annual losses in five of the past six years.