Del Global reconciles with shareholders
Trying to settle a lawsuit initiated in November after accounting irregularities were uncovered, Del Global has reached a tentative deal with shareholders. Under the agreement, Del will contribute $2 million in a subordinated note due in five years with
Trying to settle a lawsuit initiated in November after accounting irregularities were uncovered, Del Global has reached a tentative deal with shareholders. Under the agreement, Del will contribute $2 million in a subordinated note due in five years with interest at 6% per annum, 2.5 million shares of Del stock, and warrants to purchase one million shares exercisable at $2.00 per share, expiring in six years. The plaintiffs will also receive a $2 million cash payment to which Del will not contribute. The courts must yet approve the deal. In a separate action, Samuel E. Park has been appointed president and CEO of Del. Park has acted in this capacity since February.
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