San Jose-based multiprocessor Unix systems builder Arix Corp, trading under Chapter 11 bankruptcy protection, reports that it has reached agreement on a reorganisation plan with the creditors’ committee of its Arix Computer Corp subsidiary under which they will receive one share of common stock ofthe parent company for each 87.5 cents of debt. Arix expects to issue about 15.5m new shares to pay off $13.5m of debt. The creditors will be limited to selling no more than 25% of their holdings of the new issue during each quarter after the issue.Debt incurred subsequent to the start of the workout period with creditors, which is from June 30, 1991, will be repaid in full if the new creditors do not wish to convert the amounts due them to equity. Arix Computer Corp also intends to file a voluntary petition under Chapter 11 of the bankruptcy code to obtain confirmation of the plan. Arix Computer also said its Imix Corp subsidiary had arranged a $750,000 credit facility with the same financial institution that provides credit facilities to Arix Computer, and that it had won a six-month deferral of payments, amounting to $1m, on the secured term loan with both this financial institution and a unidentified strategic partner that is guaranteeing the debt.
