Action Industries Inc. Makes Announcement.NEW YORK--(BUSINESS WIRE)--Sept. 14, 1999-- Action Industries, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : AACZ) (the "company") announced that on September 10 the pending involuntary bankruptcy involuntary bankruptcy Bankruptcy that is forced by creditors instead of being initiated by the firm or individual. Compare voluntary bankruptcy. See also Chapter 7, Chapter 11. petitions against the company and General Vision Services, Inc. ("GVS (Global VideoPhone Standard) The technology behind AT&T's VideoPhones. GVS transmits at 10 frames per second, a third the rate of regular TV. The GVS technology is licensed to other manufacturers. "), an affiliate of the company, and the pending motions for appointment of a trustee under Chapter 11 of the Bankruptcy Code Bankruptcy Code may refer to:
Under a Stipulation and Order approved by Judge Stuart M. Bernstein of the United States 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. for the Southern District of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , the Company and GVS have consented to the entry of orders for relief under Chapter 11. Jim Jedrlinic will continue to serve as the chief executive officer of the company and GVS, and shall manage the day-to-day operations of GVS. A management committee composed of Jedrlinic, Shaul Kopelowitz, a director of the company, and Ralph Balsamo of Richard A. Eisner & Co., a New York accounting firm, has been appointed. Any business decisions or transactions outside of the ordinary course of business will be subject to the approval of a majority of the committee and the Bankruptcy Court. The committee is also to conduct a search for a new chief financial officer and a chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. for GVS. The committee will function until a plan for reorganization Plan for reorganization A plan for reorganizing a firm during the Chapter 11 bankruptcy process. for the company and GVS is confirmed and becomes effective, or further order of the Bankruptcy Court. Under the Stipulation and Order, for the next ninety days, any plan of reorganization filed by the company and GVS will require the consent of the Official Committee of Unsecured Creditors. If a joint plan is not filed within ninety days, for thirty days immediately thereafter the company and GVS shall have the exclusive right to file plans of reorganization, and to solicit acceptances for sixty days after such filing, unless otherwise ordered by the Bankruptcy Court. Action Industries, Inc., through GVS, is engaged in the retail optical business, providing a full range of vision care products and services through GVS-owned stores and independent panel members. This press release contains forward-looking statements within the meaning ot Section 27A of the Securities Acts of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results could differ from those projected in any forward-looking statement due to numerous factors. Such factors include general economic and business conditions, industry capacity, industry trends, competition, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , material costs and availability, the loss of any significant management personnel, the loss of any significant customers, changes in business strategy or development plans, quality of management availability, terms and development of capital, business abilities and judgement of personnel, availability of qualified personnel, changes in, or the failure to comply with government regulations and other factors referenced herein and in the other information documents. The forward-going statements are made as of the date of this press release, and the company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could change from those projected in the forward-looking statements. |
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