Allied Capital Responds to Net-Tel Bankruptcy Filing.Business Editors/Banking Writers WASHINGTON--(BUSINESS WIRE)--Oct. 3, 2000 Allied Capital Corporation (Nasdaq: ALLC ALLC Association for Literary and Linguistic Computing ALLC Allied Capital Corporation (stock symbol) ALLC Army Logistics Leadership Center (Red River Defense Complex, Texarkana, TX) ) today addressed investor questions regarding the recent bankruptcy filing of Net-Tel Communications, Inc. Allied Capital has invested approximately $22 million in Net-Tel, the majority of which is senior secured debt. The recent inquiries regarding the Net-Tel bankruptcy stemmed from a Washington Post article that erroneously er·ro·ne·ous adj. Containing or derived from error; mistaken: erroneous conclusions. [Middle English, from Latin err reported Allied Capital's investment to be $33 million. Net-Tel Communications has experienced recent liquidity and funding problems, and with the consent of its lenders chose to seek Chapter 11 bankruptcy protection. Allied Capital is working with Net-Tel and its other lenders and investors to resolve its funding needs. Allied Capital's $22 million investment represents approximately 1.3% of its total assets and 2.4% of its total equity capital. Allied Capital believes that it will achieve earnings of $0.48 per share for the third quarter of 2000, after accounting for any necessary valuation reserve related to Net-Tel. Allied Capital will release third quarter earnings on Tuesday, October 24, 2000. About Allied Capital Allied Capital is a business development company that provides long-term investment capital to fuel the expansion of growing companies nationwide. The company's private finance group provides mezzanine mez·za·nine n. 1. A partial story between two main stories of a building. 2. The lowest balcony in a theater or the first few rows of that balcony. debt and equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. ranging in size from $5 million to $30 million. Allied Capital Express, the company's small business loan program, provides real estate loans of up to $3 million for small businesses online at www.alliedcapitalexpress.com. The company also participates in the real estate capital markets as an investor in commercial mortgage-backed securities Commercial mortgage-backed securities (CMBS) are a type of bond commonly issued in American security markets. They are a type of Mortgage-backed security which are backed by mortgages on commercial rather than residential real estate. . The company is headquartered in Washington, DC and has regional offices throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . For more information, please visit our web site at www.alliedcapital.com, call Allied Capital Investor Relations Investor relations The process by which the corporation communicates with its investors. toll-free at (888) 818-5298 or e-mail us at ir@alliedcapital.com. |
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