Colonial Subsidiary Files for Chapter 11 Reorganization; Receives Debtor-In-Possession Financing.Business Editors LEVITTOWN, N.Y.--(BUSINESS WIRE)--Jan. 28, 2002 Colonial Commercial Corp. (Nasdaq: "CCOM CCOM Cheshil.com CCOM Conference Council on Ministries (United Methodist Church) CCOM Chicago College of Osteopathic Medicine CCOM Conseil Canadien des Organismes de Motoneige CCOM Call Center Operations Management CCOM Center of Coastal Ocean Mapping ") announced today that its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Atlantic Hardware and Supply Corporation ("Atlantic") has filed a voluntary petition with the U.S. 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. for the Eastern District of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of to reorganize under Chapter 11 of the U.S. Bankruptcy Code Bankruptcy Code may refer to:
Atlantic has obtained a debtor-in-possession ("DIP") credit facility with its pre-petition lender. Neither Colonial, nor its other operations, are part of the Chapter 11 filing. Atlantic, founded in 1946, distributes door hardware, doors and doorframes, primarily to building contractors and commercial developers. Atlantic has offices in Long Island City, New York, Illinois and Pennsylvania. It provides over 5,000 types of door locks, door closers, hinges and other types of door-related hardware, plus wood and hollow metal doors and frames for new building construction, building renovations, interior tenant build-outs and building maintenance. Atlantic's products are not sold into wholesale or retail markets. Its customers are primarily building contractors, construction managers, building owners and developers of commercial properties. In the second half of 2001, Atlantic suffered a sales decrease in good part because of the World Trade Center disaster on September 11, 2001. Shipments to many of Atlantic's New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. projects were suspended or delayed and other work has slowed in the winter months. In the year 2000, Atlantic disposed of its wholly owned subsidiary, a manufacturer of hollow metal doors and frames, which sustained nearly $7 million in losses and restricted Atlantic's cash flow. As part of the reorganization, Atlantic intends to continue normal day-to-day operations serving its customers. Atlantic has a contract backlog of approximately $11.5 million in new business and intends to pursue new contracts, which will be available for the reconstruction of lower Manhattan, school reconstruction programs in the state of New Jersey and tenant work, etc. Atlantic is reducing its overhead to generate cash flow. About Colonial Commercial Corp. Colonial Commercial Corp, through its ownership of Atlantic and Universal Supply Group, distributes a broad line of contract and architectural door hardware, doors and frames, and climate control products and systems to customers located in the Eastern United States. Colonial's products are installed in commercial, residential, and institutional structures, including office buildings, hospitals, prisons, schools, government facilities, homes and high-rise apartment buildings. Colonial is 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. . Its common stock is traded on Nasdaq under the symbol "CCOM", 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 "CCOMP" (Note: Each share of the Company's convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". 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 "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect" 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 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 these 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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