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French media technology group Thomson, which has been struggling to sell off its Grass Valley Group manufacturing division, announced Monday it has obtained a “safeguard” proceeding to protect it from creditors in the hope of restructuring its debt by February.
Thomson said Monday it has enough liquidity and will continue to operate under normal conditions during the period of “safeguard,” the French equivalent of Chapter 11 creditor protection.
Grass Valley Group is a division of Thomson; operations manager Dave Perillo was not available for comment. The Nevada City manufacturer of high-definition video switching equipment employs 300 people.
Thomson, an international supplier of television set-top boxes and video and telecommunications equipment, will provide creditors with the details of the restructuring plan this Thursday, and will ask them to vote on a restructuring plan on Dec. 21 and Dec. 22. A general meeting for shareholders will be held Jan. 27.
“After 10 months of constructive discussions with a majority of our creditors, I am satisfied that we have now a clear timetable for closing our debt restructuring,” Chief Executive Frederic Rose said in a prepared statement. “This allows us to provide clarity and certainty to our employees, customers, suppliers and shareholders.”
The restructuring plan will be based on terms agreed to by a majority of its senior creditors in July, Thomson said.
The company has breached its debt covenants and has been in talks since February with creditors to restructure a balance sheet that had losses of $201.5 million at the end of 2008.
Thomson competes with Motorola, Siemens and Sony Corp.
To cut debt, Thomson SA is trying to sell some of its divisions, including broadcast equipment maker Grass Valley Group, digital sign advertising unit Premier Retail Networks and cinema advertising unit Screenvision.
Grass Valley Group and Premier Retail Networks together contributed about $1.3 billion, or about 20 percent, of Thomson's revenues in 2008, the Wall Street Journal reported Monday.
Representatives from Thomson have said the group hopes to sign the sale in the second half of this year, but have offered little additional information.
The sale was taking longer than expected “due to tough market conditions,” Thomson Chief Financial Officer Stephane Rougenot told the Wall Street Journal in October.
In early November, French daily La Tribune reported Thomson was struggling to agree to terms for the sale of the Grass Valley facility to U.S. investment fund Platinum Equity, with the parties at odds on the level of financing required to fund the restructuring of Grass Valley Group.
Grass Valley Group, now on Providence Mine Road in Nevada City, has been known as “The Group” since it was founded by Dr. Donald Hare on Grass Valley's Litton Hill 50 years ago.
The group has pioneered many video-related technologies. It holds at least 400 patents, has earned more than 20 Emmy Awards and is a world leader in video technology.
Thomson acquired Grass Valley Group in 2002. The international corporation was formed in 1879 as Thomson-Houston by Elihu Thomson and Edwin Houston, two Philadelphia teachers who built the company into a leading electronics firm.
Thomson said Monday it has enough liquidity and will continue to operate under normal conditions during the period of “safeguard,” the French equivalent of Chapter 11 creditor protection.
Grass Valley Group is a division of Thomson; operations manager Dave Perillo was not available for comment. The Nevada City manufacturer of high-definition video switching equipment employs 300 people.
Thomson, an international supplier of television set-top boxes and video and telecommunications equipment, will provide creditors with the details of the restructuring plan this Thursday, and will ask them to vote on a restructuring plan on Dec. 21 and Dec. 22. A general meeting for shareholders will be held Jan. 27.
“After 10 months of constructive discussions with a majority of our creditors, I am satisfied that we have now a clear timetable for closing our debt restructuring,” Chief Executive Frederic Rose said in a prepared statement. “This allows us to provide clarity and certainty to our employees, customers, suppliers and shareholders.”
The restructuring plan will be based on terms agreed to by a majority of its senior creditors in July, Thomson said.
The company has breached its debt covenants and has been in talks since February with creditors to restructure a balance sheet that had losses of $201.5 million at the end of 2008.
Thomson competes with Motorola, Siemens and Sony Corp.
To cut debt, Thomson SA is trying to sell some of its divisions, including broadcast equipment maker Grass Valley Group, digital sign advertising unit Premier Retail Networks and cinema advertising unit Screenvision.
Grass Valley Group and Premier Retail Networks together contributed about $1.3 billion, or about 20 percent, of Thomson's revenues in 2008, the Wall Street Journal reported Monday.
Representatives from Thomson have said the group hopes to sign the sale in the second half of this year, but have offered little additional information.
The sale was taking longer than expected “due to tough market conditions,” Thomson Chief Financial Officer Stephane Rougenot told the Wall Street Journal in October.
In early November, French daily La Tribune reported Thomson was struggling to agree to terms for the sale of the Grass Valley facility to U.S. investment fund Platinum Equity, with the parties at odds on the level of financing required to fund the restructuring of Grass Valley Group.
Grass Valley Group, now on Providence Mine Road in Nevada City, has been known as “The Group” since it was founded by Dr. Donald Hare on Grass Valley's Litton Hill 50 years ago.
The group has pioneered many video-related technologies. It holds at least 400 patents, has earned more than 20 Emmy Awards and is a world leader in video technology.
Thomson acquired Grass Valley Group in 2002. The international corporation was formed in 1879 as Thomson-Houston by Elihu Thomson and Edwin Houston, two Philadelphia teachers who built the company into a leading electronics firm.
