STM Wireless Averts Foreclosure With Deal

Irvine-based STM Wireless Inc. said Friday it has reached an agreement with its lender to extend the loan on which the company had defaulted.

STM said it has established “the framework” for repaying $9 million to Wells Fargo HSBC Trade Bank. STM’s credit arrangement with the bank expired April 1, prompting the lender to threaten foreclosure.

STM, which provides satellite telecommunications to rural areas, said it will pay Wells Fargo HSBC Trade Bank an undisclosed amount between now and the time it receives a $14.6-million infusion from San Diego communications firm Remec Inc. and Pequot Private Equity Fund LP.

“We’re very hopeful and see good prospects for the company going forward,” said Emil Youssefzadeh, the company’s chief executive.

The company had previously diversified and expanded overhead too rapidly but has since begun to restructure itself, Youssefzadeh said. The company plans to contract out more of its manufacturing and consolidate its operations in Irvine, although Youssefzadeh declined to say how many layoffs the company has made.

Youssefzadeh said recent contracts in South America, including a $5.4-million deal with Bolivia’s sole long-distance provider, Entel S.A., show that the company is headed for a rebound.