Financially-crippled Zenith Electronics Corp has scored $125m in financing through a secured credit agreement with a banking group led by Citicorp. The arrangement provides the Glenview, Illinois maker of set-top boxes and cable modems the increased borrowing capacity it needs to fund working capital requirements through year-end 1998. The new funds supplement $45m in financing provided earlier this year by Zenith’s largest stockholder and creditor, LG Electronics Inc, which has extended Zenith’s right to borrow under the financing through December 31. In May, Zenith announced a plan to file for bankruptcy in the fall and re-emerge as a wholly-owned subsidiary of LG, which holds a 55% stake in the company, at the end of the year (CI No 3,417). The new finances should see the company through until it can complete the restructuring plan, which also includes the outsourcing of some manufacturing and the selling of certain ongoing businesses. Zenith said it plans to file a registration statement outlining the specifics of the restructuring with the Securities and Exchange Commission shortly.
