A Novo Broadband, Inc. To File For Chapter 11 Protection.Business Editors NEW CASTLE, Del.--(BUSINESS WIRE)--Dec. 17, 2002 A Novo Broadband, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ANVB) announced that it plans to file in Federal Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. in Delaware later today for protection under Chapter 11 of the Bankruptcy Code Bankruptcy Code may refer to:
The Company repairs digital cable modems and TV set-top boxes on an industrial scale for equipment manufacturers and cable system operators, including Motorola and Comcast. Bill Kelly, the Company's chief executive officer, said the Company expects to continue to operate efficiently and without interruption under the protection of the Bankruptcy Court. He said the Company did not expect revenues to be materially affected by the filing. The filing was intended primarily to relieve liquidity pressure caused by the recent termination of the Company's bank line, which had been its primary source of working capital. The Company was in default under the bank line because of its failure to meet a financial covenant relating to tangible net worth Tangible Net Worth Total assets less intangible assets and total liabilities. Notes: In terms of a consumer, tangible net worth is the sum of all your tangible assets (cash, home, cars, etc). . The default arose primarily because of losses and write-downs in the last quarter of its September 30 fiscal year. The Company has not yet reported its results for the quarter and the year. Kelly said that the filing would also enable the Company to extricate itself from certain unproductive contracts, which should sharply reduce monthly cash outflows. Kelly said, "Our business is sound and growing and producing cash. Our repair revenue has more than doubled in the past year, but we've suffered some growing pains grow·ing pains pl.n. Pains in the limbs and joints of children or adolescents, frequently occurring at night and often attributed to rapid growth but arising from various unrelated causes. and we're just now getting this growth under control. Unfortunately, in the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , we ran short of cash. That's primarily because we over expanded capacity in some areas and we wound up being burdened by expenses and obligations that don't relate to our ongoing business. Frankly, we need a little breathing space to straighten these things out." According to Kelly, the Company is optimistic that it will be able to obtain new financing that will allow it to emerge from Chapter 11 protection in the very near future. Kelly said the Company was already in discussions with its bank lender and prospective investors. This press release includes statements, which constitute forward-looking statements made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provision of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are identifiable by use of such words as "belief", "expect", "anticipate" or other similar words or phrases that indicate their forward-looking character. Such statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Factors which could cause or contribute to such differences are detailed in the Company's Securities and Exchange Commission filings, including its most recent Report on Form 10-KSB. |
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