CenCor Inc. Releases the Value of its Net Assets in Liquidation.MISSION, Kan Kan, river, China: see Gan. .--(BUSINESS WIRE)--Nov. 17, 1999-- 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 September 30, 1999. The Company's net assets in liquidation decreased by $5,731,000 for the nine months ended September 30, 1999, from $10,191,000 at December 31, 1998, to $4,460,000 at September 30, 1999. The decrease resulted principally from the partial liquidating distribution issued on June 7, 1999, and the recording of a reserve for estimated liquidation and contingency contingency n. an event that might not occur. costs. The amount of such reserve may be adjusted during the remaining course of the liquidation of the Company as more accurate information concerning actual wind-down costs becomes available. The Company is a dissolved dis·solve v. dis·solved, dis·solv·ing, dis·solves v.tr. 1. To cause to pass into solution: dissolve salt in water. 2. Delaware corporation A Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state. in the process of liquidation. The Company has previously paid partial liquidating distributions in the amount of $5.35 per share on March 9, 1998, and $4.25 per share on June 7, 1999. After the partial liquidating distributions and assuming the Company had 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. and distributed its assets by September 30, 1999, the Company's stockholders would have received an additional $4,460,000 in distributions or approximately $3.31 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 Company's income from liquidating activities for the nine months ended September 30, 1999, was $321,000 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 $298,000 of other income resulting from a federal income tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. and the receipt of unclaimed distributions due to holders of the Company's Old Notes. The Company's expenses from liquidating activities for the nine months ended September 30, 1999, of $642,000 consisted primarily of salaries, professional fees, and other estimated liquidating costs. The Company currently expects to make a final liquidating distribution to its stockholders prior to December 23, 1999. The Company will be required to pay or provide for any other post-liquidation costs prior to any final distribution on its outstanding common stock. The Company expects to enter a Liquidating Trust Agreement for the purpose of receiving any unclaimed principal of the Company's Non-Convertible Notes that matured on July 1, 1999, and must be claimed by July 1, 2001, and also to receive excess funds, if any, from the reserve for liquidation and contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. . The Liquidating Trust will distribute the trust property after July 1, 2001, to the holders of the Company's common stock established as of the Corporate Cessation cessation Vox populi The stopping of a thing. See Smoking cessation. Date of December 23, 1999. Due to the uncertainty of the value of the Liquidating Trust property to be ultimately distributed, the Company is unable to estimate a per share distribution amount from the Liquidating Trust. On November 3, 1999, the Company filed a Chapter 11 Final Report and Application for Final Decree final decree n. another name for a final judgment. In states where there are interlocutory decrees of divorce (in the hope that a further wait may lead to reconciliation), followed several months later by the actual divorce, the second order is called a final decree, and Order Closing Case (the "Order") with 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 Company expects the Bankruptcy Court to enter the Order within the next thirty days. Statements contained in this release that are not based on historical fact are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Important factors, beyond the Company's control, that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the factors set forth above. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The Company undertakes no obligations to publicly release revisions to these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof or to reflect the occurrence of unanticipated events. -0-
Net Assets in Liquidation:
September 30, December 31,
1999 1998
-------------------------------------
Cash and cash equivalents $ 5,132,000 $ 9,833,000
Other assets 27,000 860,000
-------------------------------------
Total assets 5,159,000 10,693,000
Accounts payable and accrued
liabilities 60,000 445,000
Reserves for liquidation and
contingencies 600,000 -
Partial liquidating distribution
payable 39,000 57,000
-------------------------------------
Total liabilities 699,000 502,000
Net assets in liquidation 4,460,000 10,191,000
Number of common shares
outstanding 1,347,069 1,350,384
=====================================
Net assets in liquidation
per share $ 3.31 $ 7.55
======================================
Changes in Net Assets in Liquidation:
9 Months Ended 9 Months Ended
September 30, 1999 September 30, 1998
----------------------------------------
Income from liquidating
activities:
Investment income $ 321,000 $ 485,000
Other income 298,000 111,000
----------------------------------------
619,000 596,000
Expenses from liquidating activities:
Salaries and related benefits 244,000 161,000
Professional fees 171,000 128,000
Other expenses 227,000 123,000
----------------------------------------
642,000 412,000
Partial liquidation
distribution 5,708,000 -
----------------------------------------
Increase (decrease) in net
assets in liquidation $ (5,731,000) $ 184,000
========================================
3 Months Ended 3 Months Ended
September 30, 1999 September 30, 1998
----------------------------------------
Income from liquidating activities:
Investment income $ 96,000 $ 145,000
Other income 295,000 -
----------------------------------------
391,000 145,000
Expenses from liquidating
activities:
Salaries and related benefits 82,000 57,000
Professional fees 65,000 25,000
Other expenses 77,000 18,000
----------------------------------------
224,000 100,000
========================================
Increase in net assets in
liquidation $ 167,000 $ 45,000
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