DULUTH, GA.: Wegener Corp.’s executive suite was shaken up as the company scored $4million 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
September 17, 2009: “Sencore Deal to Buy Wegener Cancelled”
Wegener Corp. today announced the cancellation of it’s letter of intent with Sencore of Sioux Falls, S.D.
July 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 Fiscal 2Q09”
“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 4Q”
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.
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