Colonial Commercial Corp. Subsidiary's Acquisition of BRS Products, Inc. is Approved by the Bankruptcy Court.Business Editors LEVITTOWN, N.Y.--(BUSINESS WIRE)--Feb. 1, 2000 Acquisition Represents A Vertical Diversification Into Manufacturing For Atlantic Hardware And Supply Corp. Colonial Commercial Corp. (Nasdaq: &uot;CCOM&uot;), which through its subsidiaries distributes door hardware, heating/air conditioning equipment In telecommunication, the term conditioning equipment has the following meanings:
Atlantic, which has provided certain post-filing financing to BRS Products through the pre-negotiated Plan of Reorganization, will own all of the stock of the reorganized company at the effective date. Under the plan of reorganization, BRS will assume approximately $2.5 million of pre-existing liabilities, most of which will be paid over a period of 4 to 6 years. Atlantic has agreed to make a capital contribution of at least $1,200,000 and convert a $300,000 term loan to subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". . Atlantic will relocate the BRS unit to new headquarters approximating 85,000 square feet located in Farmingdale, New York Farmingdale is a village in Nassau County, New York in the United States. The population was 8,399 at the 2000 census. The 'Village of Farmingdale is inside the Town of Oyster Bay. Farmingdale School District includes parts of both Nassau County and Suffolk County. . After the effective date, the corporate name will be changed to Well-Bilt Steel Products, Inc. There will be no meaningful interruption in production or shipments as a result of the relocation. BRS manufactures security hollow metal doors and frames, principally for prison equipment contractors, as well as commercial doors and frames. Security detention doors and frames comprise approximately 70% of BRS' sales, which were about $7.5 million for the year ended 1998. &uot;The acquisition of BRS Products as restructured through the Chapter 11 proceeding, will allow Atlantic to strategically diversify into the manufacturing of doors, with an emphasis on detention doors, as a complement to its distribution operations, &uot;commented Bernard Korn, Chief Executive Officer of Colonial Commercial Corp. &uot;While Atlantic will continue to purchase doors from a number of manufacturers, management believes that the cost savings, along with other benefits, that should accrue from its ownership of BRS should allow this acquisition to be synergistic and accretive to earnings in the future.&uot; Colonial Commercial Corp., headquartered in Levittown, New York Levittown, a suburb of New York City, is a hamlet and unincorporated political subdivision of New York State located on Long Island in Nassau County, New York. As of the 2000 census, the community had a total population of 53,067. , is a distributor of door and door hardware, heating/ventilation equipment, and climate control systems to building contractors and architectural firms, primarily in the Eastern United States. Its common stock trades on NASDAQ under the symbol &uot;CCOM&uot;, while its convertible preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. trade on NASDAQ under the symbol &uot;CCOMP&uot;. (Note: Each share of the Company's preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. is convertible into one share of the Company's common stock. Preferred stockholders will be entitled to a dividend, based upon a formula, when and if any dividends are declared on the Company's common stock.) This press release includes statements that may constitute &uot;forward-looking&uot; Statements usually containing the words, &uot;believe&uot;, &uot;estimate&uot;, &uot;project&uot;, &uot;expect&uot; or similar expressions. These statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions 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. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making the forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release |
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