System Integrators Inc

Computer Firm Files Chapter 11: System Integrators Inc., which makes computers for newspapers and magazines, filed for federal bankruptcy protection to try to get banks to refinance a $56-million loan at lower interest rates. The filing listed $30 million in assets and $81 million in liabilities. Sacramento-based SII did not disclose the interest rate on the loan, which was used to finance a leveraged buyout of company founder Jim Lennane. The prime rate in 1989 was 10.5%, compared to 6% now.

James P. Lennane, the flamboyant ex-chairman and founder of System Integrators, said goodby to his 230 newspaper and wire service customers on Tuesday with extraordinary full-page advertisements in eight papers, including the Los Angeles Times.

Computer Firm Files Chapter 11: System Integrators Inc., which makes computers for newspapers and magazines, filed for federal bankruptcy protection to try to get banks to refinance a $56-million loan at lower interest rates. The filing listed $30 million in assets and $81 million in liabilities. Sacramento-based SII did not disclose the interest rate on the loan, which was used to finance a leveraged buyout of company founder Jim Lennane. The prime rate in 1989 was 10.5%, compared to 6% now.

System Integrators, spurning an $8-a-share bid from founder and Chairman James P. Lennane, agreed Tuesday to an alternative buyout led by President Alden Edwards that will give most shareholders $10 a share. The sole exception will be Lennane, who will receive about $9 a share for his 5,147,424 shares. Based on System Integrators' 12,034,347 shares outstanding, the total value of the transaction is about $115 million.

James P. Lennane, the flamboyant ex-chairman and founder of System Integrators, said goodby to his 230 newspaper and wire service customers on Tuesday with extraordinary full-page advertisements in eight papers, including the Los Angeles Times.

System Integrators, spurning an $8-a-share bid from founder and Chairman James P. Lennane, agreed Tuesday to an alternative buyout led by President Alden Edwards that will give most shareholders $10 a share. The sole exception will be Lennane, who will receive about $9 a share for his 5,147,424 shares. Based on System Integrators' 12,034,347 shares outstanding, the total value of the transaction is about $115 million.

Alden L. Edwards has been promoted to president and chief operating officer of System Integrators Inc., a Sacramento-based maker of computerized publishing systems for newspapers. He assumes the president's title from James P. Lennane, who will retain the titles of chairman and chief executive. The company also announced that William Aaronson has been promoted to vice president-sales and John-Paul Menard has been hired as vice president-engineering.

System Integrators Inc. has signed contracts totaling more than $5 million to provide computer systems to six newspapers, two in California, one in Connecticut and three in Europe. Company officials said Tuesday the Sacramento-based firm replaced two competitive systems from rival Atex, also a supplier of computerized publishing systems. The California newspapers signing contracts with SII were the Contra Costa Times of Walnut Creek and the Press Democrat in Santa Rosa.