CenCor Announces Financial Results.KANSAS CITY Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo.--(BUSINESS WIRE)--Aug. 18, 1998--CenCor, Inc. (the "Company") released the value of its net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. in liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy as of a June June: see month. 30, 1998. As previously announced, the Company is in the process of liquidation and is expected to be fully liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. by October October: see month. 1999. The Company's net assets in liquidation increased $139,000 for the six months ended June 30, 1998 from $9,773,000 at December 31, 1997 to $9,912,000 at June 30, 1998. The Company's income from liquidating activities for the six months ended June 30, 1998 consisted of $340,000 in interest income from its investments in short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. government and government-agency investments and money market accounts. The Company's expenses from liquidating activities for the six months ended June 30, 1998 of $207,000 consisted primarily of salaries, professional fees, and other liquidating costs. The Company also recorded $6,000 in other income for the six months ended June 30, 1998. As previously announced, on March 9, 1998, the Company paid $7,159,049 as a partial liquidating distribution in the amount of $5.35 per share to shareholders of record as of February 16, 1998. After the partial liquidating distribution and assuming the Company had fully liquidated and distributed its assets by June 30, 1998 and the Company's actual realizable value of its assets and liabilities is identical to the Company's estimated realized value of these items, CenCor's stockholders would have received an additional $9,912,000 in distributions or approximately $7.34 per share, less costs 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 . The actual amount to be received upon complete liquidation may be adversely affected by claims arising from the indemnification Indemnification Used in insurance policy agreements as to compensation for damage or loss. In the context of corporate governance, Director Indemnification uses the bylaws and/or charter to indemnify officers and directors from certain legal expenses and judgements resulting from obligations resulting from the sale of the assets of its former subsidiary, Century Acceptance Corporation ("Century"), unanticipated tax liabilities, other liquidating costs, or other unforeseen factors. As part of the sale of Century's assets, $5 million of the sale proceeds were placed in escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. to secure certain indemnification obligations of the Company that expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. on July 1, 1998. During July and August of 1998, the Company received approximately $3.3 million of the escrow funds Noun 1. escrow funds - funds held in escrow cash in hand, finances, funds, monetary resource, pecuniary resource - assets in the form of money . On December 12, 1997, Fidelity asserted indemnification claims of approximately $2.5 million against the escrow account. Fidelity's claims were based upon two claims by a third party against Fidelity, as Century's successor in interest. The third party's claims against Fidelity relate to amounts due for reserves that were to be established by Century under certain agreements with the third party. Fidelity has recently released one of its claims leaving a single indemnification claim of approximately $2.3 million against the escrow. Century has advised Fidelity and the third party that neither Century nor any of its subsidiaries held any other deposits or reserves for the third party. While the Company has agreed to indemnify To compensate for loss or damage; to provide security for financial reimbursement to an individual in case of a specified loss incurred by the person. Insurance companies indemnify their policyholders against damage caused by such things as fire, theft, and flooding, which Fidelity in this matter, the Company believes this claim of the third party is without merit and is actively defending the third party claim. The Company has recently been notified by the Internal Revenue Service ("IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. ") that the tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. agreement reached for the proposed adjustments to the Company's 1990, 1991, and 1992 federal income tax returns has been approved. The Company is waiting processing of the approved agreement. Based upon the terms of the approved agreement, the Company has recorded a net recoverable for income taxes of approximately $600,000 at June 30, 1998. -0-
Net Assets in Liquidation:
June 30, December 31,
1998 1997
Cash and cash equivalents $ 4,059,000 $ 11,248,000
Other assets 6,380,000 6,182,000
Total assets 10,439,000 17,430,000
Accounts payable and accrued liabilities 464,000 432,000
Partial liquidating distribution payable 63,000 7,225,000
Total liabilities 527,000 7,657,000
Net assets in liquidation 9,912,000 9,773,000
Number of common shares outstanding 1,350,384 1,350,384
Net assets in liquidation per share $ 7.34 $ 7.24
Change in Net Assets in Liquidation:
6 months ended 6 months ended
June 30, 1998 June 30, 1997
Income from liquidating activities:
Investment income $340,000 $626,000
Other income 6,000 -
346,000 626,000
Expenses from liquidating activities:
Salaries and related benefits 104,000 507,000
Interest expense - 709,000
Professional fees 103,000 -
Other expenses - 97,000
207,000 1,313,000
Increase (decrease) in net assets
in liquidation $139,000 $(687,000)
3 months ended 3 months ended
June 30, 1998 June 30, 1997
Income from liquidating activities:
Investment income $ 138,000 $ 315,000
Other income 54,000 6,000
192,000 321,000
Expenses from liquidating activities:
Salaries and related benefits 53,000 435,000
Interest expense
- 572,000
Professional fees 73,000 -
Other expenses - 64,000
126,000 1,071,000
Increase (decrease) in net
assets in liquidation $ 66,000 $(750,000)
CONTACT: CenCor Inc., Kansas City Jack L. Brozman, 816/221-5833 |
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