ComTec International announces temporary resolution of a receivership proceeding.DENVER--(BUSINESS WIRE)--Jan. 22, 1996--ComTec International Inc. (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. - "NTEM"), formerly known as Nattem USA Inc., announced Monday temporary resolution of a receivership receivership In law, state of being in the hands of a receiver, a person appointed by the court to administer, conserve, rehabilitate, or liquidate the assets of an insolvent corporation for the protection or relief of creditors. proceeding recently commenced against the corporation. In a hearing completed Jan. 12, 1996, in the Arapahoe District Court, State of Colorado, a receiver temporarily appointed to manage the business and property of the corporation was removed and the officers and directors were authorized to return to control of the corporation. During the hearing, it was disclosed that the party seeking to become the receiver, John Watson John Watson is a common name. Some of the more notable John Watsons include:
Appellate jurisdiction and that Watson was the principal of the seller of an office building to the ComTec International Inc. Watson had been unsuccessful in persuading ComTec International to rescind To declare a contract void—of no legal force or binding effect—from its inception and thereby restore the parties to the positions they would have occupied had no contract ever been made. rescind v. the office building purchase according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Donald G. Mack, president of ComTec International. A hearing on matters raised by this proceeding is currently scheduled for Feb. 12, 1996, in the District Court. This proceeding originally arose on or about Jan. 4, 1996, when a complaint was filed against the corporation and its officers and directors by certain shareholders and creditors of the corporation. The complaint seeks dissolution, 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 and winding-up of the corporation and is premised an alleged acts of wrong-doing by the officers and directors, wasting of corporate assets and insolvency of the corporation, pursuant to the complaint, John Watson, an individual affiliated with one of the creditors, was temporarily appointed as a receiver by the court and empowered to possess, preserve and protect the property of the corporation pending a determination of the relief requested in the complaint. On Jan. 12, at the request of the corporation and the named officers and directors, Watson was removed as the receiver. An evidentiary ev·i·den·tia·ry adj. Law 1. Of evidence; evidential. 2. For the presentation or determination of evidence: an evidentiary hearing. Adj. 1. hearing to consider certain factual allegations and the need for receiver will be held Monday, Feb. 12, 1996, at 9 a.m. In documents filed with the court, the corporation and individual defendants have denied the factual allegations of the complaint and challenged the need for a receiver and the fitness of Watson to act as receiver. In its efforts to remove the receiver, the corporation placed substantial weight on the failure of Watson to advise the court of his status as a suspended lawyer for conduct involving fraud, dishonesty dis·hon·es·ty n. pl. dis·hon·es·ties 1. Lack of honesty or integrity; improbity. 2. A dishonest act or statement. Noun 1. , deceit and misrepresentation misrepresentation In law, any false or misleading expression of fact, usually with the intent to deceive or defraud. It most commonly occurs in insurance and real-estate contracts. False advertising may also constitute misrepresentation. . Mack, president and chief executive officer of ComTec, stated, "The board of directors considers this matter a dispute with certain creditors over debts allegedly due by the corporation. Management has, and will continue, to take all reasonable steps necessary to address these concerns." In a related development, the corporation announced that auditors have been retained to review the financial statements for the year ended June 30, 1995, to complete filing of the company's annual report on Form 10-KSB. The financial statements and audit were tentatively scheduled to be completed during December. However, during his tenure as receiver, the corporation believes Watson dismissed the bookkeeper, financial officer and corporate auditors. Management regrets that such action will further delay completion and filing of the annual report. The company is currently unable to predict with any degree of certainty when such financial statements will be completed. Questions should be directed to Donald G. Mack at 303/743-7983. CONTACT: ComTec International Inc., Denver Donald G. Mack, 303/743-7983 |
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