Cushman Electronics Inc. of Newport Beach, the financially troubled radio and testing equipment maker, said Wednesday it has paid off its remaining $1 million bank debt. The company, which lost $1.3 million in the first nine months of its 1985 fiscal year, retired the debt with the proceeds of a $1.19 million note received Oct. 1 from the sale of its San Jose manufacturing plant earlier this year.
Cushman sold the San Jose plant in April for $5.2 million, receiving an initial cash payment of $4 million and a note for the remaining $1.19 million. Cushman will continue to occupy the plant under a five-year lease. The sale came just weeks after the company said it expected to be plagued by losses throughout its 1985 fiscal year, which ended Sept. 30.
Earlier this year, sagging sales and losses prompted Cushman to lay off about 40 employees, more than a quarter of its work force, and to cut management salaries by 10%.