Debt Restructuring Will Gain Firm $1.4 Million

Franklin Telecommunications Corp., a Westlake Village maker of data-communications equipment, said it restructured $2 million of debt that will result in a $1.4-million gain for the company. The gain will be recorded in Franklin’s fiscal year that ended June 30.

The $2 million was owed to Seagate Technology Inc., a Scotts Valley, Calif.-based producer of computer disk drives, and was incurred by Franklin’s personal-computer business before that operation was discontinued in 1989.

The debt previously was unsecured. But after Franklin agreed to pledge all of its assets as collateral for the debt, Seagate forgave $1.4 million of the debt, said Franklin President Frank W. Peters. The assets will secure Franklin’s repayment of the remaining $600,000, he said.