"Calling for Trouble" (May), the article concerning the Teltronics/Ericsson controversy, missed the point entirely in four critical respects: 1) Teltronics was not in default in its loan from Nordic American Bank or any other loans; 2) Teltronics hadn't guaranteed the Teltronics loan from Nordic American Bank; 3) Teltronics had a net worth far exceeding all of its outstanding loans; and 4) Teltronics had the highest cash position ever (almost $2 million in cash) at the time of the attempted takeover by Ericsson.

Teltronics could easily have paid the $230,000 in interest out of its numerous checking accounts, but Teltronics had been told by Ericsson and Price-Water-house (Ericsson's accountants) that Teltronics did not have to pay the interest payment otherwise due March 5, 1979, and that Ericsson would cover the payment to Nordic for Teltronics. The reason as explained to Teltronics was that Ericsson was either going to buy or invest in Teltronics, and Teltronics could conserve its cash during this period of negotiations if it wanted to.

If you had recognized these key points, particularly that Teltronics was not in any default, the article could (and should) have been written quite differently.

Published on: Aug 1, 1984