Legacy Storage Systems International Inc of Markham, Ontario has finally completed its $20m deal to buy tape drive manufacturer Rexon Inc out of bankruptcy. The deal will involve $11.6m in cash, a promissory note for $4.25m, assumption of Rexon debtor in possession financing of not more than $2.1m, conversion of $2m of debtor financing loaned by Legacy to Rexon into Rexon common shares. There will also be a cash payment of $100,000 with Legacy assuming some contracts and unexpired leases. The company says that under Legacy, Rexon will continue to manufacture and distribute Wangtek, WangDat and Tecmar brand products, as well as Legacy-manufactured SmartArray RAID and compact disk servers, selling them through its channel partners in North America and Europe. Legacy itself plans to concentrate on expanding sales of its Vast HSS mass storage system.
