CalComp to Close After Lockheed’s ‘No’ to More Credit

Anaheim-based CalComp Technology Inc. said Tuesday that it will shut down its operations after Lockheed Martin Corp., its majority shareholder and primary lender, rejected extending its existing credit line.

CalComp, which manufactures computer graphics products and employs 250 people in Anaheim, said it hopes to sell off major parts of its business and have an orderly shutdown over the next six months.

But that will happen only if Lockheed Martin agrees to provide additional funding during that transition period. Otherwise, CalComp might be forced to file for bankruptcy protection.

“Our main goal is to work toward an orderly disposition of the assets and stay out of bankruptcy,” said John Batterton, CalComp’s chief executive and president.

The company, which employs a total of 895 workers, expects to reach the limit of its $43-million credit line from Lockheed Martin in January.

Officials of Bethesda, Md.-based Lockheed did not return phone calls.

Earlier this year, CalComp hired Salomon Smith Barney to find a buyer for its division in Scottsdale, Ariz., which develops scanners and digitizers and has 150 employees. The company is also trying to sell its division in Sunnyvale, where it develops and manufactures inkjet printers for the graphics industry.

CalComp’s Anaheim operations include administrative staff, customer service and support and some manufacturing.

The company, which once was a subsidiary of Lockheed Martin, has had 12 consecutive quarters of losses totaling $176.6 million.

Last month, Lockheed Martin said it was considering cutting its 83% stake in CalComp. Earlier this year, CalComp fired more than 200 workers in a cost-cutting move and restructured its debt with Lockheed.