Scottish legal beagle Rodime Plc is trying the patience of its bankers as one of its main lawsuits is on the verge of collapse and another has had its pre-trial conference put off for the tenth time. Rodime ceased manufacturing disk drives in 1991 and set off around the world pursuing those that it felt had infringed its 3.5 disk drive patent. It started off quite well, but the successes have dried up in recent times. There is no turnover at the Edinburgh-based company, which made pre-tax losses of $4.1m in the year to September 30, down from $7.0m last time. Some $2.0m of the losses were interest charges. Rodime is currently in negotiations with its bankers to restructure its share capital and debt, which stood at $33.9m at the year-end. The total owed to the banks was $47.2m. Non-executive director David Mathewson could not say too much about the on-going talks, other than a debt for equity swap was one of the possibilities, and that as the banks currently own only 15% of the equity, there is still some room for manoeuvre. An announcement about the restructuring is expected in January. At present the shares stand at a penny, having reached a high of 11 pence during the year. In September, the US Court of Appeals upheld a ruling for Quantum Corp and recently refused to re-visit the case. The company intends to ask the US Supreme Court for a discretionary review, but it did not sound too hopeful. Non-executive director David Mathewson said that’s where it honestly should end. The company first sued Seagate Technology Inc back in November 1992, and had its pre-trial conference date cancelled for the tenth time in July (CI No 2,711). Mathewson said the company was hopeful of getting a trial date in early next year. After all the company is three years closer than we were three years ago, as he put it. Administration costs in the year were down to $2.4m from $6.2m last time, but these are expected to rise once the Seagate case gets under way. If both oustanding cases should fail, the company still has a few tricks up its sleeve. It holds and maintains a number of other patents relating to 3.5 drives, but with narrower applications than the ones currently being contested. But Rodime also dangled the carrot of further patent applications in the pipeline that may have broader applications than the present ones, and may or may not involve 3.5 drives. The company was not saying yesterday.
