Arbatax International Inc. announces settlement of litigation with Beta Well Service Inc.ZURICH, Switzerland--(BUSINESS WIRE)--Sept. 9, 1996--Arbatax International Inc. (Nasdaq OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :ATANF and VSE See DOS/VSE. VSE - Virtual Storage Extended :AAX AAX Automated Attendant Exchange ) announced today that its subsidiary CVD CVD Cardiovascular disease, see there Financial Corp. (Nasdaq OTC Bulletin Board:CVDF) has reached an agreement with Beta Well Service Inc. (Nasdaq OTC Bulletin Board:BTWLF) to resolve 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. between the two companies which resulted from a disputed loan and a contested proxy contest over a proposal to restructure Beta Well's board. The settlement agreement will result in an immediate end to all litigation between the companies. Under the terms of the settlement, Michael Smith, President of Arbatax, will be appointed as a director to Beta Well's board which now consist of seven members, four of whom will be independent of management. William Gordica, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Beta Well, will continue on in his current capacity. In addition, the Company will extend the maturity of its current $3 million (U.S) loan to Beta Well until February 1999, as Beta Well will collateralize collateralize To pledge an asset as security for a loan. A loan to a broker is collateralized by pledging securities. the loan. Through CVD, Arbatax currently holds a position of approximately 750,000 shares in Beta Well. Mr. Smith commented on the resolution: "We believe that this agreement allows both parties to now concentrate on their mutual interests. Through our loan and present share position, we have a significant investment in Beta Well and are pleased that we have collectively reached an arrangement whereby we can work constructively with Beta Well's management to improve the company's performance, capitalize upon the underlying value which the company offers, and increase returns for Beta Well's shareholders." Mr. Smith also noted: "Through an aggressive restructuring program over the past year, Beta Well has returned to profitability by divesting itself of loss-making overseas assets and reducing its debt. The company sold its 50% interests in two international joint ventures in addition to selling numerous internationally-based well service rigs. These actions have strengthened Beta Well's financial standing and will enable the company to more effectively carry out its new growth objectives." Arbatax International operates in the financial service industry and, in particular, conducts investment and merchant banking activities which concentrate on the identification, financing and investing in undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. assets and realization of the underlying values and their development. CONTACT: Arbatax International Inc. Rene Randall, Corporate Relations (604) 683-8286 or Morgen-Walke Associates (212) 850-5600 June Filingeri/Cara Thompson/Jonathan Schaffer Media Contact: Stan Froelich |
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