10.14.2009 02:00 PM
Wegener Lands $4 Million in Financing
DULUTH, GA.: Wegener
Corp.’s executive suite was shaken up as the company scored $4 million in new financing.
Robert Placek is stepping down as CEO, to be replaced immediately by C. Troy
Woodbury Jr., who was chief financial officer. Placek will remain as chairman
of the board. James T. Traicoff becomes CFO, and Chief Operating Officer Ned
Mountain will leave the company entirely after a 25-year tenure.
The David E. Chymiak Trust has paid Wegener’s $2.9 million debt with the Bank
of America, ending the satellite transport company’s relationship with the
bank. Wegener had amended it’s 13-year-old BoA loan terms 11 times. It entered
the agreement with the Chymiak Trust under a 12 amendment that provides a total
of $4 million, excluding interest. Terms of the new loan are extended 18 months
and automatically renew for one-year periods unless terminated. The $2.9
million paid to BoA came out of the $4 million, which carries a 12 percent
interest rate. Currently, approximately $809,000 is available to Wegener.
David Chymiak, chairman of ADDvantage Technologies of Broken Arrow, Okla., also
loaned Wegener $250,000 at 8 percent, effective Oct. 31, 2009.
Wegener previously sought continued financing through a deal by which it would
be acquired by Sencore of Sioux Falls, S.D. for $6 million. That deal fell
through last month.
-- Deborah D. McAdams
More on Wegener
17, 2009: “Sencore Deal to Buy
Wegener Corp. today announced the cancellation of it’s
letter of intent with Sencore of Sioux Falls, S.D.
21, 2009: “Sencore Aims to take
Wegener in $6 Million Deal”
Sencore has made the first move to buy Wegener,
the Duluth, Ga., content distributor, for the equivalent of $6 million.
July 14, 2009: “Wegener’s
Fiscal 3Q Revenues Down 34 Percent”
“Our third quarter results were down from prior years but did fall in line
with our expectations for the quarter given the economic climate.”
April 14, 2009: “Wegener Breaks Even in
“We expect an operating loss in the third quarter and are focused on
controlling costs to see us through these challenging times.”
December 4, 2009: “Wegener Reports Fiscal
Wegener posted net earnings of $873,000, or 7 cents a share, on revenues of
$5.4 million for the quarter. During the same period a year ago, Wegener logged
$142,000, or a penny a share, on revenues of $5.7 million.