Press enter after choosing selection

Recapitalizing of Argus, Inc., Recommended

Recapitalizing of Argus, Inc., Recommended image
Parent Issue
Copyright Protected
Rights Held By
Donated by the Ann Arbor News. © The Ann Arbor News.
OCR Text

of Argus, Inc.,

(Special to The News)

CHICAGO — Argus, Inc.,
stockholders will be asked at a
special meeting June 29 to ap-
prove a recapitalization plan.
that will eliminate all or a ma-
jor portion of $10,516,000 is long-
term debt.

Malcolm M. Smith, president,
of Argus which operates a plant
in Ann Arbor, Mich., says in a
proxy statement to sharehold-
ers: |

"It is management's firm
opinion that adoption of the
plan of recapitalization is both
crucial and imperative for the
future well being of Argus and
the protection of your invest-

Shareholders will be asked
authorize increase in com-
mon shares from 2,500,000 to 3,-
500,000, reducing par value from
50 cents to 10 cents a share
and approve issuance of 55,000
shares of new five per cent con-
vertible, non-voting preferred
stock at $100 par per share.

Shareholders are also to vote
on a quasi-reorganization pro-
posal to eliminate a present def-
icit in retained earnings
through reduction of total capi-
tal in excess of par value.

Sylvania Electric Products,
Inc., former owner of Argus,
has agreed to accept 700,000
common shares and 21,000 pre-
ferred shares of Argus stock in
exchange for $3,200,000 in Argus
deentures and $2,400,000 mort-
gage note it holds, it was an-

Earlier this month, 400,000
of the 700,000 common shares
were issued to Sylvania in re-
turn fnr retirement of $2,000,000
'-sage note.

-.. ,J-;dition of the Sylvania
reement, Argus has obtained
xchange commitments from
holders of an additional '$!,-
500,000 of debentures. The hold-

i have agreed to an exchange
' 100 common shares and five
preferred shares for each $1,000
of their debentures, Smith said.

Smith said that Sylvania has
indicated that "it would vote
its 400,000 shares, representing
41 per cent of the currently
outstanding Argus common
shares, in favor the recapitali-
zation plan."

If recapitalization proposals
inpted, Smith said that at

.100,000 in long-term debt
, will be retired by June 30, thf
| end of the company's fisc;i
year ""-i "i. he said, the con:

par: ' extend to remair
ing iioiiiiiiolders the exchange
offer of 100 co.mmon shares plus
1-'"" "referred shares for each

of debentures.
uiiiplete conversion of deben-
;'es would provide Argus with
pitalization of 1,773,831 com-
'n shares, 45,480 preferred
^iic'.res and no long-term debt.

Most of the company's cur
rent long-term indebtedness
stems from purchase of Arg;;

from Sylvania in May, 106-',
Smith said.