Wang Laboratories Inc late last week announced the resignation of Ian Diery as executive vice-president for worldwide operations in a reorganisation that will result in the senior vice-presidents in charge of the US, Europe, Africa and Middle East, and Asian-Pacific operations reporting direct to acting president Harry Chou. The move follows the resignation of Fred Wang as president and chief operating officer and the decision to halt payment on more than $200m of its short-term debt. Wang is still locked in acrimonious negotations with its bankers, and the only thing that is preventing them from forcing the company into involuntary bankruptcy proceedings is the fear that such a move would mean they could kiss goodbye to their money altogether. The temporary default has made it impossible for Wang to borrow new money – its debt ratings are already in don’t-touch-with-a-bargepole C category – and observers worry that the company will not be able to generate enough cash from day-to-day operations to cover costs. At present, Wang is meeting all its trade debts, and the bankers are trying to persuade founder and chairman Dr An Wang to agree to a friendly merger with a competitor, although no clear partner for Wang has so far appeared.
