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LAST DITCH EFFORT TO RESCUE BANKRUPT ZTEL

Data PABX manufacturer Ztel Inc of Wilmington, Massachusetts has appointed an acting chief executive to salvage the company, which is operating under Chapter XI bankruptcy protection. Alan Kamman, former employee of the Arthur D Little Inc management consultancy, confirms that the company is now running with only a skeleton staff. Ztel filed Chapter XI in May 1985 after its then biggest investor, Adler Group, refused to subscribe new capital. Its other main backers, NCR, GE Ventures and Hillman Capital agreed to subscribe on the condition that the company was reincorporated and NCR took its stake up to 28%, and it set a record for the fastest in-and-out of bankruptcy. But it ran into trouble for the second time last summer 1986 (CI No 505) and refiled bankruptcy papers. At that time the company had hopes of being rescued by an unspecified company in the Far East, but there is no further word on that front.

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CBR Staff Writer

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