Printer Friendly

ALBARA CORP. UPDATES STATUS OF LITIGATION

 CONROE, Texas, July 13 /PRNewswire/ -- Albara Corp. (NASDAQ: ALAB) announced today that Dataproducts Corp. ("Dataproducts"), one of Albara's former product suppliers, has filed a motion in the United States District Court for the Central District of California seeking an injunction against the company. The motion, filed in the ongoing lawsuit between the two parties, requests a preliminary injunction providing for the mandatory turnover of all pledged collateral associated with a certain line of credit previously maintained by the company with Dataproducts. The company is vigorously opposing the motion, and, although there can be no assurances, management believes that Dataproducts will be denied this injunction. The injunction, if granted, would have a material adverse effect on the company. Negotiations aimed at settlement of the litigation have ceased, and the case is now in the discovery process.
 As previously announced in May, the company was served a complaint filed in United States District Court for the Central District of California by Dataproducts seeking to accelerate repayment of a line of credit which it alleges was approximately $700,000 at the time of filing. In early May, the company filed a series of counterclaims in response to the Dataproducts complaint. The counterclaims allege breach of contract and fraudulent and negligent misrepresentation by Dataproducts. The company seeks damages resulting from these counterclaims which total in excess of $1 million.
 As has been previously discussed, the dispute with Dataproducts and the company's subsequent loss of the printer products manufactured by Dataproducts for the company's subsidiary, Hardware That Fits, has left a significant gap in the company's product line and has had a severe impact on revenues and availability of working capital. The company, together with its financial advisers, is actively seeking new sources of working capital to improve the company's working capital situation. In pursuit of these new sources, the company has engaged in preliminary discussions with other companies in an effort to achieve this objective.
 The company has two subsidiaries: Hardware That Fits and Helix Technologies. Hardware That Fits is a direct response reseller of Apple Macintosh computers and peripherals such as monitors, printers, scanners and hard drives. Hardware That Fits also sells a line of digital imaging computer products under its own brand name, RealTech, which offer computer users added value at competitive prices. Hardware That Fits generates the bulk of Albara's revenues and has been in operation since 1989. Helix Technologies is a developer and publisher of relational database software products for the Macintosh computer. The flagship product at Helix Technologies is Helix Express, a powerful database development environment for the Macintosh.
 The company's common stock trades on the NASDAQ Small-Cap Market under the symbol ALAB.
 -0- 7/13/93
 /CONTACT: Holly Arbuckle, investor relations of Albara, 409-539-2992/
 (ALAB)


CO: Albara Corp.; Dataproducts Corp. ST: Texas IN: CPR SU:

LS-MF -- LA005 -- 0769 07/13/93 09:30 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 13, 1993
Words:476
Previous Article:PRINCETON DENTAL MANAGEMENT CORPORATION TO ACQUIRE DENTAL LABORATORY
Next Article:KAISER RESOURCES INC. STABILIZES ANNUAL WATER QUANTITIES FOR LONG-TERM WATER LEASE
Topics:


Related Articles
ALBARA ANNOUNCES FIRST QUARTER 1992 RESULTS
ALBARA SUBSIDIARY ANNOUNCES NEW PRODUCT
ALBARA ANNOUNCES SECONDARY PUBLIC OFFERING
ALBARA ANNOUNCES DISPUTE WITH SUPPLIER
ALBARA UPDATES STATUS OF LITIGATION
ALBARA CORP. REPORTS 1994 RESULTS
ALBARA CORPORATION ANNOUNCES SHIPMENTS OF HELIX EXPRESS v3.5
ALBARA CORPORATION REPORTS 1995 RESULTS
Albara Corporation Announces Agreement to Acquire Leapfrog Smart Products, Inc.
Albara Corporation Schedules Shareholder Meeting to Approve Acquisition Of Leapfrog Smart Products, Inc.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters