Los Angeles, June 12: Office equipment maker Xerox Corp. has announced a $3.1 billion recapitalisation plan as part of its ongoing efforts to cut debt and to return to sustained profitability. The move marked another step by the company best-known for its office copiers, to put behind a cloud of recent troubles, which included a now-settled regulatory probe into its accounting practices.
After cutting 15,000 jobs and shedding unprofitable units, Stamford, Connecticut-based Xerox, posted a full-year profit in 2002, its first since 1999.

Xerox said it had commitments from Citigroup, Deutsche Bank, Goldman Sachs, JP Morgan, Merrill Lynch and UBS for a $700 million revolving facility and a $300 million term loan, which both mature in September 2008.
It said that the credit facility was contingent on its raising $1.5 billion through a new financing plan, including at least $500 of common and preferred stock.
The company said it will issue 40 million shares of stock valued at $434 million, as well as $650 million of mandatory convertible preferred securities and $1 billion in 7-year and 10-year senior unsecured notes.
Bureau Report