...And Wang May Even See Black Ink
Incredibly, Wang Laboratories may be on its way to recovery. The fallen computer maker announced on July 7 that it plans to raise $100 million in debt and equity to finance a move out of Chapter 11. Wang's reorganization plan calls for issuing 30 million new shares, mostly to creditors who hold about $2 billion in debt. They may recoup 95 on the dollar. Current stockholders would receive warrants to purchase new shares. Meanwhile, former Senator Paul Tsongas (D-Mass.) and venture capitalist Peter Brooke will join a new nine-person board that includes former Ross Perot adviser John White. In the plan, company officials put Wang's post-Chapter 11 valuation at $375 million. Even better: In the fiscal year beginning Oct. 1, Wang executives project operating profits of $53 million, vs. an expected $200 million loss in the year ended June 30.
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