Oncor shareholders step in to assume a note

Maryland Watch

October 02, 1998

Financially struggling Oncor Inc. said yesterday that a group of shareholders had assumed a $4 million secured note on which the company was at risk of defaulting as a result of the collapse of a deal to sell a research unit.

The Gaithersburg-based company also said that R. James Danehy has informed Oncor that he will not become chief executive officer before the end of the year, as had been previously announced.

Danehy, formerly chief of Chiron Inc.'s diagnostics unit, will stay on as vice chairman of the board.

The company said Jose Coronas, currently acting CEO, will continue as chairman of the board of directors.

The company said it would now owe the shareholder group the $4 million. Oncor said an unidentified creditor who held the note, due Oct. 31, had made a demand for early payment as a result of Perseus Capital LLC's withdrawing its letter of intent to acquire the assets of Codon Inc.

Codon was a wholly owned subsidiary of Oncor, developing drug compounds to treat genetic defects. Oncor said it did not have the cash to meet the note demand.

Pub Date: 10/02/98

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