Facing a cash crunch and under intense pressure from its creditors, Praegitzer Industries Inc. is headed for a major reorganization that could result in a break up of the company or an outright sale of its entire business.
Company officials declined during an interview today to give details of options being considered by the Tualatin, Ore.-based contract electronics manufacturer, but admitted that the exercise could result in Praegitzer putting itself up for sale.
"We're not limiting ourselves to any specific options," said Gina O'Neill, a spokeswoman for Praegitzer. "We have asked our financial advisers to look at various options, and the company will take a decision based on their recommendation which could include a different financing plan, breaking up the company, or selling it."
Praegitzer said earlier this week that it would be unable to file its annual report for the fiscal year ended June 30 on schedule, and that it had yet to finalize future financing plans with its creditors.
The company, which had $79.7 million in debt at the end of the last quarter, said it has retained two financial firms, McDonald Investments, Inc. and Adams, Harkness & Hill Inc., to "assist in evaluating business alternatives."
"We continue to experience slight disappointments from our discontinued operations and cost of the refinance," said Matthew Bergeron, Praegitzer's president, in a statement.