Welcome to the new Independent website. We hope you enjoy it and we value your feedback. Please contact us here.

Bankruptcy story hits Wang shares

NEW YORK - Speculation mounted yesterday that Wang Laboratories, once one of America's leading computer firms, would file for bankruptcy protection, following reports that the company will default on some debts, writes Larry Black.

Wang has delayed the release of year-end results, which are expected to include a dollars 30m restructuring charge for the fourth quarter, while Fred Wang, director, seeks an equity infusion from potential investors in Taiwan.

The charge would lead to the company having a negative net worth, triggering a default on a number of loan covenants, analysts say.

Company spokesmen refused to comment on rumours of a Chapter 11 filing, beyond saying that a number of lenders had agreed to waive the default provisions. On Wall Street, however, Wang shares lost almost a third of their value on the news, falling dollars 5 8 to dollars 1 1/2 .