Control Data Corp. said yesterday it is holding discussions with its lenders and has pledged the stock of its Baltimore-based Commercial Credit Co. subsidiary as security for existing bank borrowings.
The company said the talks include a restructuring of certain revolving credit agreements. Control Data said it expects the discussions will result in new credit arrangements covering existing borrowings as well as providing "a modest amount of new short-term borrowings." Those arrangements will be secured and should provide "sufficient financial flexibility to the company," Control Data said. During the period of transition to new agreements, Control Data said it is not in compliance with certain provisions of existing credit arrangements.
Commercial Credit's net worth is put at $849.5 million by Control Data. Control Data considered selling that division earlier this year but no deal was consumated.
In addition, Control Data Corp. has announced it's putting its Ticketron division up for sale in its scramble to gain cash in view of expected sizeable losses this year. Ticketron is a computerized ticket system serving sports and entertainment groups, including state-sponsored lotteries in New York, Pennsylvania, Illinois, Delaware, Washington and Maryland. Control Data said its annual revenue is in the $100 million range.