Standard Systems & Technology Inc. said it acquired 11.3 million common shares, or 80%, of MBCH Inc. in exchange for a $1 million loan. Irvine-based Standard Systems said the loan is part of MBCH's reorganization plan, approved last month by a federal bankruptcy judge. Terms of the loan call for repayment in five years.
As part of the transaction, Standard Systems named three directors to the four-person MBCH board and will provide new management for the Salt Lake City-based company, which is engaged in factoring--or making short-term loans to companies, using their accounts receivable as security.
Standard Systems completed a move from Houston last month and is selling its interests in oil services and equipment and plans to concentrate on factoring.