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Technology / AI and automation

RECOGNITION EQUIPMENT IN AGREEMENT WITH PROSPECT GROUP

Recognition Equipment Inc, Dallas, has reached an accommodation with the Prospect Group Inc leveraged buyout team that has given up on its $78m hostile tender offer for the firm: Recognition, which said it was in violation of some bank covenants in August, has won a new $18m 24-month secured term loan from Chemical Bank and Bank of Boston to be repaid from sale of assets, and Prospect has agreed to invest $15m in the company if Recognition spends up to $20m buying in its shares to increase Prospect’s stake to 20% from the present 14.1%; the agreement allows Prospect to increase its stake to 30%.

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CBR Staff Writer

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