AgriBioTech Inc. Intends to File Voluntary Petition for Reorganization.Business Editors LAS VEGAS--(BUSINESS WIRE)--Jan. 24, 2000 Company Expects to Continue Normal Operations Generally and collectively, the broad functions that a combatant commander undertakes when assigned responsibility for a given geographic or functional area. Except as otherwise qualified in certain unified command plan paragraphs that relate to particular commands, "normal operations" of ; Negotiating for DIP Financing; Expects to Have Additional Amounts Available AgriBioTech Inc. (Nasdaq CMS (1) See content management system and color management system. (2) (Conversational Monitor System) Software that provides interactive communications for IBM's VM operating system. :ABTX) today announced that ABT ABT About ABT Abteilung (German: Department) ABT Abbott Laboratories (stock symbol) ABT American Ballet Theatre ABT Associação Brasileira de Telemarketing ABT Abort ABT Availability Based Tariff and its operating subsidiaries intend to file this week voluntary petitions with the U.S. 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 District of Nevada in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. to reorganize under Chapter 11 of the U.S. Bankruptcy Code Bankruptcy Code may refer to:
ABT intends to operate in the normal course of business during the restructuring. To ensure that ABT has the short-term working capital necessary to operate its business, ABT is negotiating for debtor-in-possession (&uot;DIP&uot;) financing from its current lending group, led by Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. N.A. This DIP financing should include additional funds. Promptly after the filing, ABT will request the Court's permission to access the DIP financing to fund normal business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets and other cash needs during the bankruptcy proceeding. The company intends to pay employee salary, wages and benefits throughout the reorganization process. The company said that its efforts over the past several months to obtain a new financing package from GE Capital were unsuccessful. &uot;AgriBioTech has faced many challenges in the last few years,&uot; said Chairman and Chief Executive Officer Richard Budd. &uot;An oversupply o·ver·sup·ply n. pl. o·ver·sup·plies A supply in excess of what is appropriate or required. tr.v. o·ver·sup·plied, o·ver·sup·ply·ing, o·ver·sup·plies of seed with a downturn in industry pricing, difficulties inherent in integrating the operations, culture and accounting systems of 34 companies into single operational units, delays in bringing seed to market, reduced revenues, higher-than-expected expenses and slow cash collections from a weak agricultural economy have led to significant losses and a lack of current liquidity. &uot;However, we believe that the benefits afforded by Chapter 11 will allow us to successfully restructure our operations and devise a plan to pay our creditors.&uot; Budd continued, &uot;Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , we believe Chapter 11 aids our ability to continue to serve our customers and pay our employees, and vendors while we reorganize.&uot; The book value of ABT's assets (excluding intangibles such as goodwill) of Dec. 31, 1999, exceeded liabilities. AgriBioTech is a vertically integrated, full-service seed company specializing in the forage and turfgrass sector, complete with research and development of proprietary seed varieties, seed processing plants, and a national and international distribution and sales network. Certain statements contained in this news release, including but not limited to information regarding the future economic performance and financial condition of the company and its proposed reorganization, are forward-looking in nature and involve risks and uncertainty. There are various factors that could cause results to differ materially from those anticipated by some of the statements made in this news release. Such factors include the company's ability to obtain DIP financing from Bank of America; the company's ability to operate in compliance with the DIP facility or obtain any necessary waivers, amendments or refinancing of the facility; the company's ability to obtain expected Bankruptcy Court approvals of the company's proposed use of the DIP facility; the company's ability to retain its employees, customers and vendors during the Chapter 11 proceeding; the overall viability of the company's long-term operational reorganization and financial restructuring plan; and other factors disclosed in Item 1 of the company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended June 30, 1999, under the heading &uot;Forward Looking Statements&uot; and other reports filed by the company with the Securities and Exchange Commission. |
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