Cerplex Announces That the Sinking Fund Payment On Subordinated Debentures was Not Made.Business Editors and High-Tech Writers IRVINE, Calif.--(BUSINESS WIRE)--April 18, 2000 The Cerplex Group Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:CPLX) Tuesday announced that it did not make the April 17, 2000 sinking fund sinking fund, sum set apart periodically from the income of a government or a business and allowed to accumulate in order ultimately to pay off a debt. A preferred investment for a sinking fund is the purchase of the government's or firm's bonds that are to be paid payment required under 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. for its 73/4% convertible subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before due 2001. Cerplex was required to make a total of $404,008 in interest and $1,801,000 in principal reduction payments on April 17, 2000. The total amount of indebtedness outstanding under the debentures is approximately $10,426,000. Cerplex further stated that it is pursuing various financing alternatives that may be available to it, although there can be no assurance that the company will be able to successfully implement such alternatives. About Cerplex The Cerplex Group provides hardware service outsourcing to the high-technology industry and specializes in asset utilization and service management capabilities, including contract assembly, depot repair, parts procurement and logistics services. Cerplex primarily provides services to the computer and peripheral, office automation, and telecommunications markets. This release may contain 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. involving risks, uncertainties and assumptions that may cause actual future events or results to differ materially and adversely from those described or implied in the forward-looking statements. Important factors that may cause such a difference for the company include, but are not limited to, the company's high level of indebtedness and its ability to repay such indebtedness; the company's volume of sales and pricing concessions; the time, rescheduling or cancellation of significant customer orders; the loss of a significant customer; the availability and pricing of competing services; uncertainties associated with international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. ; the company's ability to retain and hire key executives, technical personnel and other employees needed to implement its business plans; potential business disruptions and other difficulties resulting from "Year 2000" problems in computer-based systems Computer-based systems Complex systems in which computers play a major role. While complex physical systems and sophisticated software systems can help people to lead healthier and more enjoyable lives, reliance on these systems can also result in loss of used by the company, its suppliers or customers; general economic conditions and market conditions; and the other factors discussed in the company's filings from time to time with the Securities and Exchange Commission, including but not limited to the company's reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . The company disclaims any obligation to revise or update any forward-looking statement that may be made from time to time. |
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