CenCor Inc. Announces 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)--May 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 March 31, 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 1999. The Company's net assets in liquidation increased $73,000 for the three months ended March 31, 1998 from $9,773,000 at December 31, 1997 to $9,846,000 at March 31, 1998. The Company's income from liquidating activities for the three months ended March 31, 1998 was $202,000 in interest income from its investments in short-term government and government-agency investments and money market accounts. The Company's expenses from liquidating activities for the three months ended March 31, 1998 of $129,000 consisted primarily of salaries, professional fees, and other liquidating costs. 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 CenCor had fully liquidated and distributed its assets by March 31, 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 $9,846,000 in distributions or approximately $7.29 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 expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. on July 1, 1998. As previously disclosed, on December 12, 1997, Fidelity also asserted an indemnification claim of approximately $2.5 million against the escrow account. Fidelity's claim is 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 allegedly due for reserves that were to be established by Century under certain agreements with the third party. The first claim relates to a $200,000 deposit with Century from the third party under a guarantee agreement. When Century sold substantially all of their assets, Fidelity was given a reduction in the purchase price for the $200,000 deposit and agreed to assume Century's obligations to the third party related to the deposit. Accordingly, the Company believes this claim is without merit. The second claim by the third party relates to an alleged $2.3 million reserve account. 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 other than the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. $200,000 deposit. 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. The Company is actively attempting to resolve the $2.3 million claim with the third party so that Fidelity will agree to the release of the escrowed funds on July 1, 1998. The Company's 1990, 1991, and 1992 federal income tax returns were examined 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. ) which proposed certain adjustments, a portion of which have been protested by the Company. The Company has recently reached a tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. agreement with the IRS. Based upon the terms of the tentative agreement, the Company has recorded in other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. a net recoverable for income taxes of $488,000 and $595,000 at March 31, 1998, and December 31, 1997, respectively. The net recoverable for income taxes at December 31, 1997 also includes a $107,000 refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies for state income taxes, which was received in March 1998. -0-
CenCor Inc.
Financial Highlights
Net Assets in Liquidation:
March 31, December 31,
1998 1997
Cash and cash equivalents $4,148,000 $11,248,000
Other assets 6,209,000 6,182,000
Total assets 10,357,000 17,430,000
Accounts payable and accrued
liabilities 445,000 432,000
Partial liquidating distribution
payable 66,000 7,225,000
Total liabilities 511,000 7,657,000
Net assets in liquidation 9,846,000 9,773,000
Number of common shares outstanding 1,350,384 1,350,384
Net assets in liquidation per share $7.29 $7.24
Change in Net Assets in Liquidation:
3 Months Ended 3 Months Ended
March 31, 1998 March 31, 1997
Income from liquidating
activities:
Investment income $202,000 $311,000
202,000 311,000
Expenses from liquidating activities:
Salaries and related benefits 51,000 72,000
Interest expense - 137,000
Professional fees 30,000 10,000
Other expenses 48,000 29,000
129,000 248,000
Decrease in net assets in liquidation $73,000 $63,000
CONTACT: CenCor, Inc., Kansas City Jack L. Brozman, 816-221-5833 |
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