DDL Restructures Its Retirement Liability
DDL Electronics of Newbury Park has successfully restructured its unfunded retirement obligations under several benefit plans covering certain former officers, key employees and directors, officials said.
As a result of the settlement agreement reached last month with the participants in these plans, DDL recorded a gain of about $2.55 million and has reduced its liabilities by a corresponding amount.
DDL President and CEO Gregory L. Horton said the settlement “represents a major milestone in DDL’s ongoing efforts to improve its balance sheet and increase shareholder value.â€
Under terms of the settlement, the participants agreed to relinquish all future payments due them in return for 600,000 stock purchase warrants.
The warrant exercise price will be equal to the New York Stock Exchange closing price of DDL’s common stock on May 31, minus $1.50, subject to a minimum exercise price of $2.50 and a maximum exercise price of $6.
The warrants may be called for redemption by the company at any time after June 1.
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