Allied Devices Files for Protection from Creditors.Business Editors HICKSVILLE, N.Y.--(BUSINESS WIRE)--Feb. 19, 2003 Allied Devices Corporation (ALDV.OB) filed today for protection from creditors under Chapter 11 of the Bankruptcy Code Bankruptcy Code may refer to:
Mark Hopkinson Mark Hopkinson (October 8, 1949 - January 22, 1992) was a convicted murderer who was executed by the U.S. state of Wyoming in 1992 for the murders of Vincent Vehar, Beverly Vehar, John Vehar, and Jeffrey Green. , Chairman of the Board, remarked, "The past 18 months, particularly since September 11, 2001, have brought a continuous decline in sales volume so that our operating rate Operating rate The percentage of total production capacity of a company, industry, or country that is being used. operating rate The portion of capacity at which a business operates. is now roughly 40% of what it was two years ago. While our customers tell us that we have not lost their business, they too have seen drastic reductions in shipments to their customers. Until last week, our banks had voluntarily provided forbearance Refraining from doing something that one has a legal right to do. Giving of further time for repayment of an obligation or agreement; not to enforce claim at its due date. A delay in enforcing a legal right. on asserting their rights and remedies, in large measure because the Company, the banks and a third party investor had been actively negotiating a recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. and restructuring plan. While those negotiations had resolved all business issues but one, on February 7, 2003, the investor and the banks determined that there was no practical way of reconciling their incompatible positions and the investor withdrew his offer. Since then, the banks have asserted their right of offset and applied cash in the Company's operating accounts against balances due them. "We have filed for protection from creditors in the belief that we have a viable business but require some time to reorganize re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. . We believe we have a sufficient supply of cash to carry out a plan that will significantly reduce overhead and take us back to the basic elements of success for our industry: unbeatable quality, prompt service, and competitive prices. The restructuring will bring intense focus to our most central competencies. While this will probably affect certain customer relationships, we are confident that the Company will emerge as a stronger and more agile presence in the dynamic markets where we compete." Allied Devices is a leading manufacturer and distributor of high precision mechanical assemblies and components used in industrial and commercial equipment. These products, manufactured to exacting tolerances, provide precision motion control in such products as factory automation, robotics, aerospace and scientific instrumentation, semiconductor equipment, and medical diagnostic and operating room operating room n. Abbr. OR A room equipped for performing surgical operations. equipment. All statements contained herein that are not historical facts, including but not limited to statements regarding the Company's current business strategy and the Company's plans for future development, operations and capital raising, are based upon current expectations. For factors, which could affect the realization of those expectations, see the Company's current 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. . |
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