GCA Corp, the stricken Andover, Massachusetts manufacturer of integrated circuit fabrication equipment, has had to go offshore to France and Japan to put together a convincing refinancing package, but the company now expects to raise a total of $72m in new equity – $18m more than it initially wanted. The offshore investors are Sumitomo Corp of Japan and Matra SA of France, who will subscribe a total of $24m; the company looks for another $48m from existing shareholders, from employees, and from US institutions. GCA’s saviour, Richard Rifenburgh, will resign his posts of chairman, president and chief executive once the refinancing is complete – but it could be touch and go, because business conditions have continued to deteriorate, and the company now expects to report a loss from continuing operations of $15m to $25m for 1986 – but it has one last card to play. It hopes to have the refinancing plan completed in April but threatens potential dissidents that it will file for Chapter XI bankruptcy protection if it is not approved.
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