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Renaissance_1985 - Franklin Computer will. go By JEAN WALLACE Of...
Franklin Computer will. go By JEAN WALLACE Of the Courier-Post Courier-Post Courier-Post Franklin Computer Corp., on the road to recovery after emerging from bankruptcy, announced yesterday it soon will become a publicly publicly traded company. The Pennsauken computer maker will issue 70,000 shares of common stock this week to about 550 creditors, a step toward retiring its debts. The creditors, owed about $7 million, will receive one share of stock for each $ 1 00 they are owed. The process will make Franklin a public company, company, as creditors begin trading their shares in the over-the-counter over-the-counter over-the-counter over-the-counter over-the-counter market. However, until the first creditor sells his shares which could occur as soon as they are received their market market value will not be known. The price would have to be $100 a share for creditors to recoup their claims though the stock's price is likely to be far lower initially. "The important thing about being a public company is the name recognition it gives you in the marketplace," said Gregory Winsky, the firm's vice president and general counsel. "It really gives the company a little more prestige to be a publicly traded firm." Franklin, which emerged from Chapter 11 bankruptcy last February, comes by its new public status in a roundabout way. Normally, a firm going public must first file a prospectus with the Securities and Exchange Commission (SEC) before selling stock publicly. For Franklin, however, the stock distribution was approved as part of its reorganization plan by the U.S. Bankruptcy Court in Philadelphia. The shares will go only to unsecured creditors, whose debts are not backed by such collateral as land or machines. By issuing the stock now, Franklin hopes to enhance its visibility as it prepares to launch a new line of Apple-compatible Apple-compatible Apple-compatible computers. Called the ACE 2000 series, the new personal computers will be introduced next week. "Weexpeditedthis(stock)issuancesothatour past creditors would have tangible evidence of their ownership interests in Franklin as our new products are unveiled," said Morton David, the public firm's chairman. "As equity owners, they should be on board as we embark on the adventure adventure of the second wave in the personal computer market." Franklin expects to distribute another 180,000 shares of stock to unsecured creditors before the end of the year. The creditors, who will own about 1 0 percent of the company, also will recei vesome cash reimbursement for their claims. The rest of Franklin is owned by company company management and Renaissance Technologies Technologies Corp., a New York venture capital firm. Franklin also said yesterday it had acquired Cord Electronics Inc., a Westbury, N.Y.-based N.Y.-based N.Y.-based importer of computer parts, for an undisclosed price.

Clipped from
  1. Courier-Post,
  2. 28 Aug 1985, Wed,
  3. Page 56

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