Irvine’s Admor Memory Defaults on Loan

Irvine-based Admor Memory Corp. said Wednesday it has defaulted on a loan that is secured by all of the company’s assets and, unless it can raise additional capital soon, the company will fail.

Admor manufactures memory products for personal computers and printers. But the company and the memory industry in general have been struggling with a surplus of products and eroding prices.

In July, Admor agreed to be acquired by Long Beach-based NetGateway Inc., an online commerce management company, but that deal fell through in October, the company said.

Admor said it has been trying to raise capital since then. The company received a $5.5-million line of credit from Coast Business Credit in October. But after Admor failed to line up $5 million in new capital, Coast declared the company in default, Admor said.

Admor officials did not return telephone calls for comment.

The company, whose stock trades over the counter, last reported sales of $48 million in the fiscal year ended June 30, but did not say whether it had a loss of profit for the year. It said it earned $594,000 in the last six months of 1998.

The company’s stock, which has been on a downward slide for more than a year, closed at 7 cents a share Wednesday, off 2 cents. The shares traded as high as $4.25 last year.