Union Bank Gives Wespercorp Extension on $5.4-Million Loan

Wespercorp, the faltering Santa Ana electronics maker, said it has won a crucial 90-day extension of its $5.4-million loan from Union Bank and will use the additional time to negotiate new terms for the note.

Company officials acknowledged that without the extension, Wespercorp, which has been struggling for more than two years, would have been forced to file for bankruptcy. The loan was due Jan. 31.

“The extension was critical for us,” said Wespercorp’s chief financial officer, Daniel Whelan. “Our debt was due, and you either pay it off, renegotiate it or face the consequences.”

Whelan said the company has made all of its required interest payments on the loan, which is Wespercorp’s only long-term debt.

George Dashiell, president and chief executive said the company began negotiating with Union Bank for the extension in December but was forced to delay the talks while it settled two lawsuits and won final approval of changes in its contract with the Federal Aviation Administration. Negotiations regarding the lawsuits and contract changes were completed last month.

“With these issues now finalized, we are in a much better position to have meaningful discussions with the bank,” Dashiell said in a prepared statement. “While we are encouraged by Union Bank’s willingness to work with us, there is, of course, no way to predict the outcome of these discussions.”