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ORANGE COUNTY BRIEFLY

Pinnacle Micro Faces Sale or Bankruptcy; Chief Quits

July 02, 1997|(Times Wire Services)

IRVINE — Pinnacle Micro Inc., expecting a loss of $5 million for the second quarter on revenue of $11 million, said Tuesday that it is having trouble paying trade debt on a timely basis and faces bankruptcy or the sale of the company.

The company, which provides recordable compact disk storage systems, also said that Daryl J. White has resigned as Pinnacle's chairman and director.

The company said it has retained the investment banking firm of Houlihan, Lokey, Howard & Zukin to evaluate financial alternatives for raising cash, including "locating a financial or industry partner or other transaction."

The company said it also has retained the Lobel & Opera bankruptcy law firm and turnaround specialists Kibel, Green Inc. for management aid and for help in dealing with various creditors.

Pinnacle has tentatively scheduled a meeting with its vendors for July 14 to discuss alternatives and to seek the cooperation of its creditors in a possible restructuring of its trade debt.

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