Argus Action Is Approved

Argus Action
Is Approved

(Special to The News)

CHICAGO — Argus, Inc.,
shareholders have approved a
recapitalization plan calling for
conversion of $10,516,000 in long-
term debt into equity securities..

The shareholders agreed to
increase from 2,500,000 to 3,500,-
000 the number of authorized
common shares and reduce par
value from 50 cents to 10 cents
a share. Also authorized by
shareholders was issuance of
55,000 shares of new five per
cent convertible, non-voting pre-
ferred stock with $100 a share
par value.

Malcolm N. Smith, president
of Argus which operates a man-
ufacturing unit in Ann Arbor,
Mich., said a second stage of
recapitilization calls for an ex-
change offer to stockholders of
$3,290,500 of debentures.

Holders of $7,225,500 of long-
term debt earlier agreed to ex-
change their securities for a
combination of common and
preferred stock. Among them
was Sylvania Electronic Products,
Inc., former owner of Argus,
with debt holdings of $5,000,000.

It was purchase of Argus from
Sylvania that re n prac*
tically all of the long-term debt,
Smith said earlier.

Full conversion of the long-
term debt will give Argus a
capital structure of 1,773,831
common shares and 45,480 pre-
ferred shares as well as a net
worth of about $7 million.

Shareholders also approved a
qu a s i-reorganization proposal
which eliminated the present
deficit in retained earnings
through reduction of total capi-
tal in excess of par value. This
results in a net worth of ap-
proximately $3,500,000 — a total
!that was reflected on the Argus
'balance sheet yesterday, the
send of the firm's fiscal year.