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Technology / AI and automation


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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