Datapower Overhauling Management, Finances

In an effort to curb what its chairman calls a two-year decline, Datapower Inc. of Santa Ana said it has initiated a number of changes in its upper management and in its existing financial arrangements.

Frederick J. McKee, chairman of the computer power supply maker, said he has stepped down as president and chief executive officer and has handed over those duties to Edward Blackman, formerly vice president and general manager of Elpac Inc. in Santa Ana. McKee said he intends to “give Blackman full operating authority to turn the company around.”

McKee also said Michael McGlone has replaced Terry Busby as the company’s vice president and chief financial officer. Busby will assist McGlone until a new position in the company is found for him. William Fordiani, formerly executive vice president, has resigned from the company, McKee said.

The company’s new financing arrangements include a $750,000 loan which the company plans to replace with a series of convertible preferred stock upon shareholder approval. Also, Revere AE Capital Funds Inc. of New York, a holder of a $2.5-million subordinated debenture in Datapower, said it will accept a series of convertible preferred stock, rather than the principal and interest due under the note, upon shareholder approval.

McKee also said Datapower is renegotiating its existing credit line with the Bank of the West in Newport Beach, adding that the new arrangements should be complete within a month. The company has no plans for any other changes or cutbacks.