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Shareholders OK Recapitalization: Genisco Technology Corp. reported...

From Times Staff and Wire Reports

Shareholders OK Recapitalization: Genisco Technology Corp. reported Friday that its recapitalization plan designed to avoid a bankruptcy filing was approved by the company’s shareholders. “This certainly solidifies our financial position and assures our customers and suppliers that we’re going to have the financial resources to compete for new contracts and have the ability to meet all our obligations,” said Phillip Friedman, chief executive of the Anaheim firm. The recapitalization plan will reduce debt payments and settle litigation with a former landlord. Under the plan, Genisco will exchange about $4 million in bank debt and $3 million in lease-related claims for newly issued convertible preferred and common stock.


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