U.S. Surgical Corp. said last week that it is renegotiating its bank loans and some of its leases. The company also said it has hired two investment banking firms to look for equity investors.
The announcements followed a court's decision that competitor Johnson & Johnson's Ethicon unit had not infringed on a U.S. Surgical patent for a popular endoscopic surgery device. A victory in court and financial award could have helped the company's balance sheet, industry analysts said.
The Norwalk, Conn.-based company, a leading supplier of surgical products, said it plans to appeal the decision.
U.S. Surgical said it expects to report a loss of about 26 cents per share on sales of $244 million in the fourth quarter, not counting a previously reported $130 million restructuring charge.
Late last year, the company said it would shrink its work force, freeze or cut pay and take other steps to improve its financial condition (Dec. 13, 1993, p. 16).
The company halted trading of its shares on the New York Stock Exchange for several hours Feb. 16, the day the court loss was announced. Its stock fell $5.63 to close at $21.50 that day.