SCIENCE/TECHNOLOGY : Genisco Technology Says Tentative Pact Avoids Bankruptcy

Genisco Technology Corp., a maker of industrial and military computers, said Monday it will be able to avoid bankruptcy under a tentative agreement reached with the company’s three major creditors.

Phillip C. Friedman said the recapitalization plan will be presented to shareholders for a vote at a special shareholders meeting in Anaheim on Dec. 27. “It’s an option to bankruptcy,” he said.

Under the agreement, the company will reduce its debt payments to Sanwa Bank and settle lawsuits with two former landlords, Copley Real Estate Investment Partners and Warland Investment. The company had owed about $16 million to the creditors.

In exchange, the creditors will receive unspecified equity stakes in the company. Genisco moved from a headquarters in La Mirada this year to a smaller facility in Anaheim and opened up a factory in Tijuana.