Satellite Needs Investor

Satellite Control Technologies Inc. said Monday it may have to consider bankruptcy options after negotiations with an overseas investment group stalled.

The company said Jeffrey M. Sherman, president and chief executive, and Lawrence E. Hecox, corporate secretary and director, resigned as a result of the stalled funding.

Acting chief executive Bernard Snyder said that if the company can’t find another investor “over the next month or two, we will be forced to consider bankruptcy options.”

The company said it has enough cash to complete a working prototype of its Alpha Trak 9000 vehicle tracking and recovery unit, but insufficient capital to properly test it.

Satellite Control agreed to the terms of a letter of intent in April to secure a $500,000 capital infusion to be followed by a $1.5-million letter of credit.

Hecox and Sherman agreed to assist the company in its reorganization efforts and may rejoin the company when funding permits. Sherman will act as a management consultant and business advisor to Snyder, who is the company’s only officer and director.