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Faxon restructuring Damon D. Hickey 18 Aug 1994 14:54 UTC

Dear Mr. Markwith:

There has been much discussion on library electronic listservs recently
concerning the financial health of Faxon and its continued ability to meet
its commitments to its customers. I have read with interest Judy Davis's
letter of 17 August, posted initally on the "SERIALST" list, and copied to
the "LIBADMIN" list.

In that letter, Faxon's president Judy Davis states, "We are segregating
all 1995 client payments in a separate account to be used only to pay 1995
orders." I would like to know whether that is an escrow account that CANNOT
legally be used by the company for other purposes or frozen if the company
were to be forced into bankruptcy.

Second, I would like to know when Faxon will be produce documentation
certifying that it has, indeed, paid off "all outstanding 1994 publisher
debt and provide[d] substantial working capital for the future." Such
documentation might include letters from publishers indicating that debts
have been paid.

You should be aware that several of your customers have already begun the
laborious process of changing serials vendors and that others are poised to
follow suit unless Faxon can convince us that our institutions' funds are
safe with your company. I am posting this letter to the two lists mentioned
above. These lists include a large number of serials librarians and library
administrators. I hope that you will reply, not only to me, but also to
those lists.

o Damon D. Hickey               o Voice: 216 263-2483
o Director of the Library       o FAX: 216 263-2253
o The College of Wooster        o E-mail:
o Wooster, Ohio 44691