9 July 1998: America“s high-performance optical and electrically conductive thin-film-coated products manufacturer, Photran Corp., said it has entered into a letter of intent to acquire US$ 1.5 milli…
9 July 1998: America“s high-performance optical and electrically conductive thin-film-coated products manufacturer, Photran Corp., said it has entered into a letter of intent to acquire US$ 1.5 million in convertible debt from St. James Capital Partners LP. In addition, Photran reached an agreement to restructure a sale-leaseback agreement for its P-3 manufacturing line, reports say. The financing will be used to pay principal under the new P-3 lease terms, to complete the installation of the P-3 equipment and for general working capital purposes, Photran said. Photran had stopped making payments on a previous agreement with NBD Equipment Finance Inc. due to a shortage of working capital, but recently NBD agreed to restructure the agreement. NBD demanded Photran cover all remaining lease payments, however, the company said. In the fourth quarter, Photran recorded a charge of US$ 900,000 related to the lease default, but the company said it now expects to reverse the charge and record it as income in the second quarter of 1998.