Namsco Investors Balk At Offer; Deal Collapses

An outside offer to acquire $5.9 million in Spokane-based NAMSCO Corp. debt for 20 cents on the dollar has failed, documents filed with the U.S. Securities & Exchange Commission show.

NMS Acquisition Co. in Tacoma withdrew its offer Feb. 13 after investors failed to offer the necessary two-thirds of NAMSCO debentures, a type of bond, to complete the deal.

It is uncertain what the failed bid for NAMSCO bonds means for the future of the company, which reported a negative net worth as recently as November.

NAMSCO, 122 E. Montgomery, is a manufacturer and distributor of playback systems and recorded music and videos for funeral homes, churches, hospitals and other customers. The 39-year-old company employs about 70 people.

NMS Acquisition offered to pay $1.17 million for $5.9 million in debentures due Aug. 1, 2003.

But the deal was contingent on investors tendering two-thirds of NAMSCO bonds. The offer drew 51 percent participation, far short of the goal, but an indicator that many investors felt that NAMSCO’s paper had lost value.

Paul Luke, an officer with NMS Acquisition Co. was unavailable for comment. Prior to the offer, Luke said it was the best way to keep NAMSCO, which is in default on interest payments on the bonds, afloat.

Merrill Womach, whose family controls 84 percent of NAMSCO stock, also was unavailable for comment.

NAMSCO issued the debentures in 1993 to creditors when the company and a subsidiary, National Music Service Inc., emerged from Chapter 11 bankruptcy protection.

, DataTimes