COURT APPROVES FNN REORGANIZATION PLAN; NEW COMPANY TO EMERGE AS 'DATA BROADCASTING CORP.'
COURT APPROVES FNN REORGANIZATION PLAN; NEW COMPANY TO EMERGE AS 'DATA BROADCASTING CORP.' NEW YORK, April 30 /PRNewswire/ -- Financial News Network Inc. (NASDAQ-FNNQC) announced that Judge Francis G. Conrad of the U.S. Bankruptcy Court for the Southern District of New York confirmed FNN's plan of reorganization under Chapter 11 of the Federal Bankruptcy Code. It is anticipated that the plan will become effective in June 1992. In his closing statements, Conrad remarked on the complexity of negotiations that had been required to achieve the many agreements, settlements and compromises contained in the plan. The complexity to which Conrad referred included agreements with FNN equipment lessors, settlements of class action lawsuits by shareholders and a multi-part settlement with Security Pacific/Bank of America. As part of the Security Pacific/Bank of America Settlement, FNN co-chief executives Allan R. Tessler and Alan J. Hirschfield have agreed to invest $2 million to buy the common stock to be received by the bank. The purchase will make Tessler and Hirschfield the emerging company's largest shareholders. Tessler and Hirschfield said: "We are extremely pleased that the court has confirmed FNN's plan. We take particular pride in having obtained court confirmation of FNN's plan less than 14 months after FNN filed for protection under Chapter 11." Recent statistics indicate that it normally takes a public company 22 months to receive Chapter 11 plan confirmation, and only 17 percent of the cases filed eventually receive confirmation. FNN will transfer its remaining assets to a new company, which will be called Data Broadcasting Corporation. Data Broadcasting's lines of business include stock market quote services and other specialized market data vital to individual investors (under the names Data Broadcasting MarketWatch, QuoTrek and Signal) and to securities industry professionals (under the name of Shark Information Services). Data Broadcasting common stock is expected to trade on the NASDAQ Stock Market on the effective date of the plan, subject to the approval of the National Association of Securities Dealers, Inc. (a new symbol will be announced when approved). Hirschfield and Tessler commented: "We believe that the new Data Broadcasting Corporation will have a viable financial structure which should enable it to achieve a strong presence in the rapidly growing marketplace for specialized data services. We are proud to have guided FNN through bankruptcy and look forward to an active role in Data Broadcasting's future." -0- 4/30/92 /CONTACT: Amber Gordon of Financial News Network, 703-359-6236/ (FNNQC) CO: Financial News Network ST: New York IN: SU:
MH-DC -- DC028 -- 5150 04/30/92 16:48 EDT
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|Date:||Apr 30, 1992|
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