Everest & Jennings Expects $41-Million Loss for ’89

Everest & Jennings International Ltd. said it expects to report a $41-million loss for 1989 and that it needs a $55-million line of credit and a $15-million cash infusion to keep operating.

The Camarillo-based company, which is one of the nation’s biggest wheelchair producers, previously had indicated that it would post a major loss for the year because of restructuring costs, inventory writedowns and start-up costs for new products.

Everest & Jennings said its controlling stockholder, Industrial Equity (Pacific) Ltd., recently made an $8.1-million investment in the company in addition to its original stock purchases, and that it is willing to provide yet another $15 million in cash that the company needs.

That second investment is subject to several conditions, including the company’s ability to get the $55 million in credit from its banks, the company said. Industrial Equity is controlled by New Zealand financier Ronald Brierley.

Everest & Jennings, at Industrial Equity’s request, also proposed to consolidate its Class A and Class B common shares into a single class, subject to shareholders’ approval. Each Class B share has 10 times the voting power of the Class A stock, and Industrial Equity currently owns about 51% of the Class B shares.