Subsequent events

12 Months Ended

Dec. 28, 2012

(20) Subsequent events

At a special meeting held on January 21, 2013, our shareholders approved amendments to the Company's Articles of Incorporation. The amendments included an increase to the number of common stock we are authorized to issue from 175 million shares to 275 million shares and authorized the issuance of up to 1,000 shares of Series A preferred stock.

On January 22, 2013, we issued 1,000 shares of the Series A preferred stock to Oaktree. Pursuant to the Investment Agreement with Oaktree dated November 7, 2012, the issuance of the preferred stock resulted in the termination of a warrant previously issued to Oaktree, which granted them the right to purchase 19.9% of the common stock of Technitrol, our wholly- owned subsidiary. Refer to Note 7, Warrant and preferred stock, for a discussion of the Series A preferred stock terms.

On March 11, 2013, the Company entered into a letter agreement with Oaktree which included an incremental term loan commitment of $23.0 million upon which we may draw if our common stock is delisted and the holders of our senior convertible notes require us to repurchase these notes. Terms of the incremental term loan will be identical to those of Term A Loan. In consideration for the forbearance and additional commitment we have agreed to adjust the conversion ratio for the preferred stock held by Oaktree such that the total common stock issued to Oaktree upon conversion of the preferred stock will equal approximately 67.9% of our total common stock (on a pro forma fully diluted basis as of November 20, 2012, and without giving effect to shares of common stock and warrants previously owned by Oaktree). Refer to Note 6, Debt, for additional information regarding this letter agreement.