Howard military contractor resumes limited operations Deal with bank allows about 100 workers to return

bankrupt company still for sale.

May 07, 1991|By Jon Morgan | Jon Morgan,Evening Sun Staff

A Howard County military contractor that abruptly closed its doors and laid off hundreds of workers two weeks ago has resumed limited operations but is negotiating to sell the business.

Daedalean Inc. sent its workers home -- without pay -- on April 26. The company, which has been threatened with a loss of all of its government business because of the tax-evasion convictions of its chief officers, filed a week ago for protection from its creditors under Chapter 11 of the Federal Bankruptcy Act.

About 100 of the 266 workers laid off nationwide last month were recalled and back at work yesterday, said Missy Hall, a spokeswoman for the company. Daedalean has headquarters in Woodbine, manufacturing operations in Columbia and additional facilities in five other states.

Hall called the current work force a "skeletal crew." She said she did not know if more would be recalled or what the outlook is for the firm.

Charles Docter, a Washington attorney representing the company, said an agreement had been worked out with Maryland National Bank. The bank prompted last week's bankruptcy filing when it called in a $3.6 million loan to Daedalean, Docter said.

An arrangement with the bank allowed the company to resume operations while negotiations continue with potential buyers, Docter said.

Meanwhile, Daedalean is also negotiating with the Navy over a proposal to bar the company from bidding on government work. The Navy proposed the so-called "debarment" earlier this year after two top Daedalean officials pleaded guilty to tax evasion.

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