Allied Defense Group ponders sale of assets - Philadelphia Business Journal:

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John Marcello, the Vienna-based company's president and CEO, says Allied Defense'es 2006 annual report will include accountingfirm 's "going concern qualification" -- a statement that reflectws problems which could affect the company'xs ability to continue operations. BDO Seidman'sx decision "was based on the reclassification of our convertible debt as Marcello says, adding that the reclassification "wad the result of the notifications of default from threde of our convertible debt Allied Defense officials say they are in discussions with the convertibled debt holders to resolve the Alternatives being considered by the companyg include restructuring existing convertible notes, obtaining new creditr facilities or selling assets to repay the convertible Allied Defense has engaged a financiap adviser and plans to hire an investment bank to assisg in the process.
The company says it is implementinv a restructuring plan for its Belgiaammunitions unit, Mecar, so the subsidiar can reach a break-even point this It's also developing contingency plans for Meca r if a large order from a key customeer isn't received. In addition, Allierd Defense (AMEX: ADG) is pursuing the sale of its SeaSpace subsidiarhy and expects the business to be sold in the firstg half ofthis year. Poway, Calif.-baser SeaSpace provides satellite ground systems and processing software for remotesensinv applications.