Alpha Technologies Group Fails to Amend or Extend Credit Agreement and Enters into a Voluntary Foreclosure Agreement.LOS ANGELES Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. -- Alpha Technologies Group, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ATGI ATGI Alpha Technologies Group, Inc. ATGi Active Technologies Group, Inc. ) announced today that discussions with its new lenders to extend or refinance the Company's existing credit agreement have been unsuccessful. The Company's total indebtedness to such lenders is approximately $23 million. As a result, the Company entered into a foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. agreement with such lenders in accordance with the Uniform Commercial Code. Pursuant to the foreclosure agreement, the Company was released from all indebtedness to such lenders in exchange for the surrender of the Company's collateral securing its obligations under the credit agreement. The collateral consisted principally of the capital stock of the Company's subsidiaries. The new lenders have represented that their current intention is to continue the operations of the subsidiaries' business. As a result of the foreclosure agreement, the Company has no remaining operations and a de minimus amount of cash. Management is exploring the possibility of Alpha remaining a public company which may seek to acquire, merge or combine with an operating business. The Company also announced that following the surrender of the collateral to its lenders, Robert Streiter, Greg Brogger and Robert Kors resigned as directors of the Company. In addition, the Company announced that its auditors, Deloitte & Touche LLP LLP - Lower Layer Protocol , resigned prior to the completion of its audit of the Company's financial statements for its fiscal year ended October 31, 2004. As a result, the Company will be unable to file its 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 that period on time. Forward-Looking Statement forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the following: changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, excess or shortage of production capacity, compliance with covenants in the Company's loan documents, ability to meet principal payments under those loan documents and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. , and general domestic and international economic conditions. Such forward looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances which may take place after the date of this release. |
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