Play Meter

UPDATE EDITION
Volume 5, Number 22
December 1, 1979
Seeburg files bankruptcy,
plans reorganization
The Seeburg Corporation of Chi -
cago filed a petition under chapter 11
of the U . S . Bankruptcy Code in
federal court of the northern district
of Illinois October 19 .
Chapter 11 is a new law which
went into effect October 1 of this
year .
The bankruptcy was blamed on
difficulties in procuring electronic
assemblies of a model during the first
four or five months of production last
year .
"The buyers failed to supply
them ," John Chapin , president of
Seeburg told PLAY METER . "Be-
cause of that , our production
schedule was severely restricted , and
that distorted the financial picture for
the entire year ," he said . "We just
didn 't have the adequate quantities ,
and it eventually caught up with us .
We just had to take a very positive
business tactic ."
Joseph L. Matz , attorney for the
company , reported that "while the
word bankruptcy appears in the
name of the court and the law under
which our case was filed , the
reorganization case that we filed is
not a bankruptcy case . The case was
filed for the purpose of restructuring
our financial affairs .
"We are a business - a viable
business . We manufacture and sell a
fine product and we intend to remain
in business , to sell and service our
customers, " he said. "Please do not
be misled by any publicity or rumors
to the contrary. "
Bernie Cohen , advertising-public
relations manager , agreed . "It's not a
bankruptcy situation . We 're not
shutting the doors or anything like
that. "
Chapter 11 allows a corporation to
consolidate its creditors . The bank-
ruptcy court decides what amounts
creditors are to receive , although an
attorney unrelated to the Seeburg
case noted that creditors in such
cases "almost always receive less
than they've claimed ." Although
creditors may ask that a corporation
be placed in bankruptcy , Seeburg
filed the bank petition in this case .
"Without the law , creditors would
be able to force bankruptcy , but
under the law , when Seeburg goes to
court voluntarily and files , we are
temporarily protected and given time
to reorganize financially ," Chapin
noted .
"This is to the advantage of the
federal and local governments ,"
Chapin asserted . "Then people
aren 't out of work , etc ."
But he ended on a more
promising note for Seeb:..trg's future.
" Everything here is falling into
place ," he said . "We 're getting a loan
of a significant sum , and production
sch edules are set up. We expect very
shortly - probably next week - to
start the whole production process
when the plan is approved ."
A company which files under
chapter 11 is given a specified period
of time to come up with a program ,
which is presented to creditors , then
negotiated and discussed until agree -
me nt is reached between the parties .
Ohio association
schedules mechanics school
The Ohio Music and Amusement
Association has slated the last of its
AMOA-approved mechanics school
on digital pinball machines December
3-12 at the Imperial House North in
Columbus .
Taught by AMOA 's Donald Miller ,
considered by many .. to be an expert
in teaching repair of coin machines ,
will lecture on how to read ,
understand and apply schematics .
All circuits , for example , are followed
and explained. The sequence of
operation is covered using the
schematic to determine how the
machines operate , as well.
Students learn the use and
function of each part. Low and high
voltages - causes and effects - are
studied . Also , the use of a meter ,
proper shopping procedures , pre-
ventive maintenances , and how to
operate digital games with success .
Other topics include how to
prevent player abuse and how to
make the most money for the
location and the operator.
Students will attend class from 9
a .m . to 5 p .m . for ten consecutive
days , including Saturday ansJ Sun-
day .
Registration , which is not to
exceed 20 , is $200 per person on a
"first come , first serve" basis . Meals ,
lodging and transportation is not
included. Apply to OMAA , 41 South
High Street.
Columbus , Ohio
43215 .