CashTek makes announcement.MELVILLE, N.Y.--(BUSINESS WIRE)--April 27, 1995--CashTek Corp. (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. "CAHT CAHT Coalition Against Human Trafficking "), today announced that it has entered into an agreement with the Chapter 7 Bankruptcy Trustee for Kenilworth Systems Corp. to settle the adversary proceeding Any action, hearing, investigation, inquest, or inquiry brought by one party against another in which the party seeking relief has given legal notice to and provided the other party with an opportunity to contest the claims that have been made against him or her. the Trustee had commenced against CashTek in May 1994. The company had acquired substantially all of Kenilworth's assets for approximately $2.8 million in February 1993 pursuant to the terms of a sale ordered by the Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. . The action brought by the Trustee alleged that the company owed the Kenilworth bankruptcy estate in excess of $23 million for monies due and owing due and owing adj. (See: due). , breach of contract and unauthorized post-petition transfers. Pursuant to the settlement, which is subject to approval of the Bankruptcy Court, CashTek will pay the Trustee the amount of $100,000 and will withdraw certain claims against the Kenilworth bankruptcy estate. CashTek will however, remain entitled to receive the balance, if any, of a $1 million payment which the Trustee is holding in escrow, after payment of all allowed claims, including administrative claims, in excess of $2.8 million in connection with the Kenilworth bankruptcy. CONTACT: Cashtek Corp., Melville, N.Y. Edward C. Lee, 516/756-1717 |
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