Titan to Take Assets of Insolvent SureBeam

Titan Corp. said Monday that it would take over most of the assets of SureBeam Corp., the subsidiary it spun off in 2002, to satisfy the $25-million debt, held in a senior secured note, owed to it by SureBeam.

The plan has been approved by the U.S. Bankruptcy Court in California, San Diego-based Titan said.

The company will get all of the assets of SureBeam, a maker of food-radiation systems, except for cash and two customer receivables.

SureBeam said in January that it would liquidate after failing to raise funds to continue operating.

Titan, a maker of military radios that agreed to be acquired by defense contractor Lockheed Martin Corp. in September, plans to sell or otherwise dispose of the SureBeam assets.

The settlement is consistent with the assumptions made by Titan when it took a $10-million impairment charge announced in January.

Titan said it would get “substantially all” of SureBeam’s assets, including equipment, inventory, patents and some customer receivables.

Titan shares fell 13 cents to $19.93 in New York Stock Exchange trading Monday. They have dropped 8.6% this year, after more than doubling in 2003.

Lockheed, the largest U.S. defense contractor, had offered to buy Titan for $22 a share in cash and stock to expand its technology-services business.

Titan last week said the deal may not be completed if a criminal probe into alleged bribes of foreign officials by Titan consultants isn’t concluded by April 12, when Titan shareholders are scheduled to vote on the sale.