Helionetics’ Tri-Lite to File Reorganization Plan, Rehire Founder
Tri-Lite Inc., a Helionetics Inc. subsidiary that filed for bankruptcy protection earlier this year, said it has reached an agreement with its primary lender and plans to file a reorganization plan with the U.S. Bankruptcy Court this month.
The lighting company has brought back its former top executive, A. Alvin Katz, who founded Tri-Lite 20 years ago but resigned last July to meet one of the conditions set by Cleveland-based Star Bank, the company’s primary lender, for issuing a $5-million credit line. But Katz, whose brother is the chief executive of Helionetics, has agreed to resign again if the company reports a loss in any one fiscal year. The board of directors also will have the right to request his resignation if operating profits fall below 10% in any fiscal year.
The company said it expects to emerge from bankruptcy in September “debt free, operationally profitable, and with a positive cash flow.”
As part of the plan, Van Nuys-based Helionetics will contribute its AIM Energy Inc. subsidiary to Tri-Lite and most Tri-Lite directors, now essentially officers of Helionetics, will be replaced by independent, outside directors.
Helionetics will remain the company’s majority shareholder.