Mego Acts to Remain in Business
NEW YORK-Mego Corporation has received approval from General Electric Credit Corporation, its major lender, and other creditors to take steps to remain in the toy business.
Mego has formed a new subsidiary, Ojem, Inc., which will operate as a sales, marketing, research anc development and licensing firm Ojem will have as its chairman and president James Groberg anc Michael Bauer, Mego's top executives.
The new Mego unit's initial cIiea is the Phoenix Toy Company. a toy. making subsidiary recently established by the Pac Corporation of Farmingdale, N.Y. It is expected to begin shipping by early May.
According to Bauer, Pac. which has been Mego's principal U.S. assembler, supplied the finances for most of the R&D for Mego's 1983 product line.
Marty Abrams, Mego's former chairman, has forma1ly resigned from Mego International. and now acts as a consultant to Phoenix.