Memorex Telex NV reports that its Prepackaged Plan of Reorganisation under Chapter 11 of the US Federal Bankruptcy Code has now been confirmed by the US Bankruptcy Court in Wilmington, Delaware, and is due to become effective on Tuesday next week, whereupon the company intends to proceed with the planned issue of equity in exchange for a substantial part of the debt securities outstanding. It is also to have its shares traded in American Depository Receipt form under the management of J P Morgan & Co. The intention is that they should start trading at the end of the month on the NASDAQ National Market system. The company also reports that the uncertainty created by the bankruptcy proceedings exacerbated the effects of the recession and that turnover for its fiscal third quarter to December 31 fell 12.3% to $387.1m. Operating profit before depreciation and amortisation slumped 70.3% to $18.7m; ninemonth turnover fell 9.5% to $1,101m.
