Aura Retires Approximately $15.3 Million in Debt.Business Editors EL SEGUNDO El Segundo (ĕl sēgŭn`dō), industrial city (1990 pop. 15,223), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1917. Its products include navigation and computer systems, aircraft parts, office machines, telephone apparatus, and , Calif.--(BUSINESS WIRE)--March 5, 2002 AURA SYSTEMS, INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: AURA) announced today that it had restructured and retired approximately $15.3 million of debt and accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. . The debt restructure involved approximately $4.2 million of debt forgiveness, a cash fee paid to Aura of approximately $1.3 million and the conversion of approximately $11.1 million into common stock at market. The transaction closed on February 28, 2002. The retirement of the outstanding debt will result in an extraordinary pre-tax gain on the early extinguishments of debt of approximately $5.5 million for Aura Systems in the fourth quarter of fiscal 2002. The transaction will eliminate approximately $14.8 million of principal payments and approximately $800,000 of interest payments that would otherwise have been required in fiscal 2003. Mr. Carl Albert, Aura Systems' Chairman of the Board remarked, "The completion of this transaction and retirement of a significant amount of the Company's debt strengthens the financial position of the Company and is consistent with our business plan." For more information about the Company's AuraGen product see the company's website, http://www.aurasystems.com/. Aura Systems, Inc., a leader in electromagnetic systems, is located in El Segundo, CA. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under 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: The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks are described in the Company's Securities and Exchange Commission filings. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion