CellPoint's Major Debt Holders Convert To Equity All Remaining Debt Extended for Two Years; Formal Restructuring in Swedish Subsidiary.Business Editors NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of And STOCKHOLM, Sweden--(BUSINESS WIRE)--March 14, 2002 CellPoint Inc. (Nasdaq: CLPT), a global provider of mobile location software technology and platforms, has concluded preliminary agreements to eliminate short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. held by Castle Creek Castle Creek may refer to:
In the terms negotiated with all the major debt holders late Friday last week, half of the principal and interest on each outstanding debt, which equates to $5.5 million, will be converted to equity at 78 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. - a 50% premium to the latest market closing price. The remaining $5.5 million in debt has been restructured as long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and is not due until March 2004. Castle Creek as the senior debt holder will have the right to match any financing the Company would do at a price significantly below 78 cents by converting that same portion of their notes, dollar for dollar, into common stock at the same time and at the same price, but with no warrant coverage. These agreements with the debt holders are subject to a settlement being negotiated in parallel with the rest of the Company's creditors, discussed below, and the Company's ability to raise additional capital in the short term. Jan Rynning, a director of CellPoint Inc. and attorney specializing in financial restructuring, stated, "I have reason to believe that a sound agreement with the creditors will be reached since the reconstruction will likely be concluded under the Swedish legal procedure termed `voluntary composition'. The board considers that this sweeping financial reconstruction, together with the fact that Castle Creek has worked so cooperatively with the Company to reach this stage, is great progress for all of the Company's interested parties. This road brings CellPoint back to a positive spiral where even proportionately small funds enable a much-needed security to continue as a going concern - a security that clears the way for sales that we have technical and commercial reasons to expect." "The short-term debt had turned out to be an obstacle for interested parties such as new investors, strategic partners as well as customers and we have worked cooperatively with our stakeholders to repair this," said Peter Henricsson, 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 CellPoint Inc. "We regard the recently announced order for NTT-DoCoMo's i-mode through the KPN-group operator E-Plus as a confirmation of the Company's strong market position. This played no small part in convincing the Company's debt holders to participate in this offer to join the Company as shareholders." The Company's Swedish subsidiary, CellPoint Systems AB, has entered into formal restructuring termed `voluntary composition' for settlement payments on all existing payables; other existing payables in the group will be addressed in a similar manner. Under Swedish law, the subsidiary has suspended all payments and a plan of settlement of 25% payment on outstanding payables is offered to all creditors. All new goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. procured going forward will not be subject in any way to this `voluntary composition' plan in Sweden or elsewhere across the Company. The Company will disclose publicly further details of the final restructuring once a settlement with existing creditors is concluded and definitive agreements with debt holders are signed. CellPoint Inc. (Nasdaq and Stockholmsborsen: CLPT) is a leading global provider of location determination technology, carrier-class middleware and applications enabling mobile network operators rapid deployment of revenue generating location-based services See mobile positioning. for consumer and business users and to address mobile E911/E112 security requirements. CellPoint's two core products, Mobile Location System (MLS See multilevel security. ) and Mobile Location Broker (MLB MLB Major League Baseball MLB Minor League Baseball MLB Middle Linebacker (football) MLB Motor Life Boat MLB Matt Leblanc (actor) MLB Mother Love Bone (band) ), provide an open standard platform adapted for multi-vendor networks with secure integration of third-party applications and content. CellPoint's entry-level location platform handles over 500,000 location requests per hour and has a seamless migration path to GPRS (General Packet Radio Service) The first high-speed digital data service provided by cellular carriers that used the GSM technology. GPRS added a packet-switched channel to GSM, which uses dedicated, circuit-switched channels for voice conversations. and 3G. CellPoint's early entry and experience with European mobile operators has allowed the development of products and features that address key requirements such as active and idle mode positioning, international roaming, multiple location determination technologies and consumer privacy. CellPoint is a global company headquartered in Kista, Sweden. For more information, please visit www.cellpoint.com CellPoint(TM) and CellPoint Systems(TM) are trademarks of CellPoint Inc. Forward-looking statements in this release are made pursuant to the 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. provisions of the Private Securities 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. Act of 1995. Actual results may differ materially from those projected in any forward-looking statement. Investors are cautioned that such forward-looking statements involve risk and uncertainties which may cause actual results to differ from those described. Copyright (c) CellPoint Inc. 2002 |
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