Resdel Retains Firm to Weigh Sale of a Unit

Financially troubled Resdel Industries said it has hired the New York investment bank Drexel Burnham Lambert Inc. to evaluate “several proposals” for the purchase of its largest subsidiary.

A month ago, Resdel Industries said it expected to report “substantial overall losses” for its fiscal year that ended June 30. At the same time, the company said that it was experiencing “significant cash-flow problems” and that it planned to hire a Los Angeles consulting firm specializing in corporate turnaround situations to help sort out its financial problems.

In a statement Friday, the Newport Beach firm said it has received several offers for the purchase of its Resdel Engineering Corp. subsidiary. The Arcadia-based unit, which makes microwave and digital equipment primarily for the military, is the largest of Resdel’s three business units.

Resdel said Drexel Burnham Lambert will act as financial adviser in evaluating the purchase offers for the Resdel Engineering unit and “exploring strategic alternatives.”

Last month, the Newport Beach firm said its Resdel Engineering unit was expected to earn a profit for the year just ended. Resdel has not yet reported financial results for the full fiscal year.

For the nine months ended March 31, Resdel reported a loss of $288,000, contrasted with a year-earlier profit of $1.4 million. Revenues increased 46% to $18.4 million.

Resdel officials could not be reached for comment Friday.