SONICblue bins refinancing plans

SONICblue has scrapped plans to seek private equity-financing, citing current market conditions. The company can always dip into its rapidly depleting pot of UMC shares (there are two entries for UMC investments on SONICblue's Q4 balance sheet, amounting to just over $163m at December 31, 2001, compared with $500m worth of shares in July 2001), but this will reduce the safety margin in SONICblue's shares (as well as cutting investment income for the company), if it continues to produce operating losses.

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