Computer Automation Sells Debentures

Computer Automation Inc., the ailing Irvine computer maker, confirmed Thursday that it has sold $3 million worth of debentures to Larry Doskocil, a Kansas pizza-topping magnate who has also purchased an option to buy 23.5% of the company’s common stock.

Computer Automation president George Pratt said the company would use its new cash infusion “to accelerate plans to restructure its business.” No details were released.

Terms of the debenture sale called for the company to expand its board of directors to seven members and accept Doskocil’s nominees for the two new positions: Frank L. Klepetko, a senior vice president for PaineWebber Inc., and David Smoak, the chief financial officer at the Doskocil Cos. in Hutchinson, Kas.

In addition, the board voted to give Douglas Cutsforth, vice president and general manager of Computer Automation’s industrial products division, the seat vacated earlier this year by company founder David Methvin.

The company also said that as a result of the debenture sale and the pending sale of its commercial systems division, release of its fiscal year-end financial data has been delayed. A spokesman said the company usually releases its results for the year, which ended June 30, in late August. He declined to give a release date.