Command Security Corp. Expects to Take an Approximately $1 Million Charge in its Second Fiscal Quarter.LAGRANGEVILLE, N.Y.--(BUSINESS WIRE)--Sept. 10, 1997--Command Security Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CMMD CMMD Ceramic Metal Matrix Diaphragm CMMD Command ) Wednesday reported that one of its service company clients located in Boston filed last week under Chapter 7 of the Bankruptcy Code Bankruptcy Code may refer to:
The potential charge to earnings for the quarter ending Sept. 30, 1997 based on notes and advances plus debt guaranteed by Command (net amounts previously deferred) is approximately $765,000. In addition, there are accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying valued at approximately $680,000 due to Command from the service client's customers. Command intends to aggressively pursue collection of these accounts. The notes, advances and guarantees are secured by a lien against the service company's client list, and under its service agreement Command has the right to take over those accounts. Several factors, including the results of the bankruptcy proceedings bankruptcy proceedings n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party , will determine Command's success in acquiring those accounts. Command has launched its own investigation of the status of the accounts and has engaged counsel to represent its interests in the bankruptcy proceedings. William C. Vassell, the company's chairman of the board, said: "We will aggressively pursue all legal remedies to collect the monies due Command from the service company's customers as well as to obtain these customers for Command. Although the maximum impact on earnings for the current quarter and for the year ending March 1998 could be as much as $1.5 million, our current expectation is closer to $1 million. Fortunately, due to the improvements in our cash position over the past year, the impact on our cash flow should be minimal. We are working with our senior lender who has indicated its willingness to cooperate with us in order to smooth out any short-term cash flow issues. Command Security Corp. provides security services Security services are state institutions for the provision of intelligence, primarily of a strategic nature, but also including protective security intelligence. Examples include the Security Service (MI5) and the Secret Intelligence Service (MI6) in the United Kingdom, and the to company-owned offices in 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 , New Jersey, California, Illinois, Connecticut, Florida and Pennsylvania and provides back-office service agreements to independent security companies nationwide. CONTACT: Command Security Corp. William C. Vassell, Chairman of the Board 914/454-3703 or Radcliffe & Associates Inc. Donald Radcliffe, 212/605-0174 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion