AremisSoft Announces Court Approval of its Disclosure Statement and Schedule for Chapter 11 Confirmation Hearing.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--May 30, 2002 AremisSoft Corporation announced today that the U.S. District Court for the District of New Jersey approved the disclosure statement in connection with its previously announced Plan of Reorganization. The disclosure statement was approved without objection, and AremisSoft may now begin soliciting acceptances for its proposed Plan of Reorganization. The confirmation hearing on the Plan of Reorganization is scheduled for June 28, 2002. AremisSoft also announced that the official equity committee and the representatives of the plaintiff class in the pending class-action 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. have expressed strong support for the Plan of Reorganization. Under the Plan of Reorganization, AremisSoft's shareholders at June 27, 2002 will receive 39.5% of the stock of SoftBrands, Inc., AremisSoft's wholly-owned operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , and members of the plaintiff class will receive 60.5% of the stock of SoftBrands. The plaintiff class will also receive all of the interests in a liquidating trust being formed to pursue litigation claims on behalf of AremisSoft and to liquidate To pay and settle the amount of a debt; to convert assets to cash; to aggregate the assets of an insolvent enterprise and calculate its liabilities in order to settle with the debtors and the creditors and apportion the remaining assets, if any, among the stockholders or owners of the other non-operating assets Non-Operating Asset Assets that are unnecessary to the ongoing operations of a business. Notes: Sometimes referred to as "redundant assets." See also: Non-operating Cash Flows, Operating Expenses, Operating Income of AremisSoft. SoftBrands will be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to 10% of the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the liquidating trust. George Ellis George Ellis, FRS, (born August 11, 1939) is the Distinguished Professor of Complex Systems in the Department of Mathematics and Applied Mathematics at the University of Cape Town in South Africa. , 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 SoftBrands, indicated that, "We are pleased that this important step in the reorganization has been completed and that the confirmation date has been scheduled. We look forward to being able to operate SoftBrands as an independent entity and to generate value for our shareholders through what we believe is a solid business with a bright future." Cautionary Statement: All statements, other than historical facts, included in the foregoing press release regarding the Company's financial position, business strategy, and plans of management for future operations are "forward looking statements." These statements are based on management's beliefs and assumptions, and on information currently available to management. They involve risks, uncertainties, and assumptions, including the risk that the plan of reorganization might not be approved in its present form or at all, and the other risks discussed in the Company's filings with the Securities and Exchange Commission and in the disclosure statement. In particular: The Company is unable to substantiate To establish the existence or truth of a particular fact through the use of competent evidence; to verify. For example, an Eyewitness might be called by a party to a lawsuit to substantiate that party's testimony. the approximately $90 million of revenue reported from its emerging markets group for fiscal 2000, or the value of several acquisitions. The Company was able to confirm only $1.7 million in revenue in 2000 from the NHIF NHIF National Health Insurance Fund (various countries) in Bulgaria while it reported $7.1 million in revenue from such contract. The Company has not filed periodic reports since the report for the quarter ended March 31, 2001, or restated prior reports to take account of the foregoing, and there is therefore no current financial information available regarding its operations. The Company is subject to pending litigation by the SEC, and by a class that consists of most of its former shareholders. The Company's ongoing software businesses are subject to the risks inherent in the software applications markets in which they function, and world events that affect those markets, including the worldwide downturn in the hospitality business after September 11, 2001, and the general affects of a declining economy on the manufacturing business. The Company undertakes no obligation to publicly update these forward looking statements, whether as a result of new information, future events or otherwise. |
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