Santa Ana Maker of Circuit Boards Files Bankruptcy

Facing a cash crunch and unable to raise new funds, Metropolitan Circuits of California on Friday filed for Chapter 11 bankruptcy protection in federal court here.

The company, a manufacturer of printed circuit boards and a subsidiary of Metropolitan Circuits Inc., had assets of about $6 million and debts of $10 million, said spokeswoman Cecilia Wilkinson.

“The company’s financial condition made it impossible to get the financing necessary to meet the company’s cash needs,” said Richard Sandberg, chief executive officer of the parent company. “Hopefully, the company will now be able to restructure its indebtedness and obtain the necessary financing.”

Under Chapter 11, a company is allowed to continue operations while developing a plan to reorganize and pay off its debts.

The subsidiary’s two major secured creditors are General Electric Co. and Advanced Dielectric, Wilkinson said. It also has 165 unsecured creditors.

The parent company last reported financial results a year ago. For the nine months ended Nov. 25, 1989, the company reported a loss of $830,000 on sales of $5.1 million, compared to a loss of $1.1 million on sales of $5.6 million a year earlier.

Wilkinson said the subsidiary hired turnaround specialist Kenneth C. Cleveland in October to assist in its restructuring. In addition, Paul G. McNamara, former president of Anaheim-based Aeroscientific, was named president of Metropolitan Circuits Inc.

The subsidiary, Metropolitan Circuits Inc.’s only operating unit, laid off about 50 employees in recent months, leaving the company with 257 employees.

The American Stock Exchange has halted trading of the parent company’s shares.