New proposal may bring new investor into Microtec
September 2, 2004
ST. AUGUSTIN, Quebec - Microtec EnterprisesÃ¢â‚¬â„¢ second quarter results announced a net loss of $532,000 and that an investorÃ¢â‚¬â„¢s proposal is expected to be approved by shareholders.
The companyÃ¢â‚¬â„¢s shareholders rejected a $15.5-million equity offer presented to the company by a group of investors in the beginning of August. As part of the new proposal, the company is trying to negotiate an extension with its creditors until Oct. 29.
The company has been struggling through the first part of the year and industry insiders say it has been for sale for some time. Most recently, six board members resigned after insurance coverage was not extended to them, leaving them unprotected in the case of lawsuits. Now, six seats remain open, which may be filled by representatives from a new investor or purchaser.