CenCor Inc. makes announcement.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. 15, 1997--CenCor Inc. (the "company") announced it received 126,418 shares of its common stock in response to the company's self-tender offer Self-tender offer A company that tenders for its own shares. to purchase up to 570,000 shares of its common stock at a per-share price of $8.75 that expired on Aug. 12, 1997. The company has elected not to extend the offer beyond Aug. 12, 1997, and has accepted for purchase 126,418 shares tendered to the company pursuant to its self-tender offer. After the purchase by the company of the shares tendered pursuant to its offer, the company has 1,338,812 shares of common stock issued and outstanding. The common shares are quoted on the 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. under the symbol CNCR CNCR Concurrent CNCR Characterization of Neurospora Circadian Rhythms in Space CNCR Construction Non-Conformance Report . On Aug. 13, 1997, the quoted bid price of the common shares on the OTC Bulletin Board was $9.06. As previously announced, on May 30, 1997, the company also defeased its outstanding 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. due July 1, 1999, in the principal amount of $7,203,726 by delivering approximately $6.4 million in U.S. Government Securities to the indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. trustee. The defeasance defeasance n. an antiquated word for a document which terminates the effect of an existing writing such as a deed, bond, or contract if some event occurs. DEFEASANCE, contracts, conveyancing. of the long-term debt will allow for payment in full of the notes at the July 1, 1999, maturity date. In addition, 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 June 30, 1997. 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 decreased $687,000 for the six months ended June 30, 1997, from $17,394,000 at Dec. 31, 1996, to $16,707,000 at June 30, 1997. The decrease is attributable to expenses from liquidating activities exceeding income from liquidation activities for the period. The company recognized $626,000 in income from liquidating activities during the six months ended June 30, 1997. The company's sources of income consisted primarily of investment income from the company's short-term government and government agency investments. The company incurred $1,313,000 in expenses from liquidating activities during the six months ended June 30, 1997. The company's expenses consisted mainly of salaries, accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the of interest on the company's then outstanding long-term debt, and other liquidating expenses. For the three months ended June 30, 1997, the company also incurred additional salary expense for accrued additional payments due its officers and directors upon liquidation. In addition, interest expense for the three months ended June 30, 1997, includes the difference between the recorded fair value of the long-term debt on May 30, 1997, and the amount of the company's cash delivered to the indenture trustee to defease the company's long-term debt on May 30, 1997. The company is expected to be fully liquidated by October 1999. In the event that the company had fully liquidated and distributed its assets by June 30, 1997, and assuming that the company's actual realized value of its assets and liabilities is identical to the company's estimated realized value of these items, the company's shareholders would have received $16,707,000 in distributions or approximately $11.22 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 , as compared to $17,394,000, or $11.69 per share, at Dec. 31, 1996. 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 Corp. ("Century"), unanticipated income tax liabilities, or other unforeseen factors, including legal matters. -0-
Net Assets in Liquidation:
June 30, Dec. 31,
1997 1996
Cash and cash equivalents $12,223,000 $14,513,000
Other assets 5,627,000 10,320,000
Total assets 17,850,000 24,833,000
Accounts payable and accrued
liabilities 529,000 648,000
Income taxes payable 614,000 1,110,000
Long-term debt -- 5,681,000
Total liabilities 1,143,000 7,439,000
Net assets in liquidation 16,707,000 17,394,000
Number of common shares outstanding 1,488,411 1,488,411
Net assets in liquidation per share $ 11.22 $ 11.69
Operating Results for:
Six Months Ended Six Months Ended
June 30, 1997 June 30, 1996
Income from liquidating activities $ 626,000 $ 1,229,000
Expenses from liquidating activities 1,313,000 1,357,000
Decrease in net assets in
liquidation $ (687,000) $ (128,000)
Three Months Ended Three Months Ended
June 30, 1997 June 30, 1996
Income from liquidating activities $ 315,000 $ 722,000
Expenses from liquidating activities 1,065,000 619,000
Increase (decrease) in net assets
in liquidation $ (750,000) $ 103,000
CONTACT: CenCor Inc., Kansas City Jack L. Brozman, 816/221-5833 |
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