Compass Completes Sale of Mexico Operations and Files Bankruptcy.GARDENA, Calif.--(BUSINESS WIRE)--Sept. 28, 1999-- Compass Plastics & Technologies Inc. (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 :CPTI CPTI Conscience and Peace Tax International CPTI Counselling and Psychotherapy Training Institute (Edinburgh, Scotland, UK) CPTI Center for Patent and Trademark Information CPTI Concrete Polishing Technical Institute ) Tuesday announced it has completed the sale of its Tijuana, Mexico operation for $5.1 million. Proceeds from the sale were used to repay equipment loan obligations to GE Capital Corp. and Phoenixcor Financial Services, and amounts owing under the company's commercial loan agreement with California Bank & Trust and Manufacturers Bank. Ghias & Friends Inc. d/b/a Dynamic Plastics ("Dynamic"), a newly formed corporation made up in part of eight senior members of AB Plastics' management including Jawed jawed adj. Having a jaw or jaws, especially of a specified kind. Often used in combination: slack-jawed; the jawed fishes. Adj. 1. Ghias, vice president-manufacturing, purchased certain assets of AB Plastics including certain trade 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 , inventory, machinery and equipment located in Tijuana, and the common stock of AB Plastics de Mexico, S.A. de C.V. ("ABT ABT About ABT Abteilung (German: Department) ABT Abbott Laboratories (stock symbol) ABT American Ballet Theatre ABT Associação Brasileira de Telemarketing ABT Abort ABT Availability Based Tariff "), an AB Plastics subsidiary. Dynamic assumes certain liabilities including certain trade accounts payable, certain employee benefit liabilities, and certain liabilities of ABT. The Tijuana operation was the last remaining operating facility after the company closed its Gardena operation and transferred its business to the Tijuana plant on June 4, 1999. The company sold its MOS (1) (Metal Oxide Semiconductor) See MOSFET. (2) (Mean Opinion Score) The quality of a digitized voice line. It is a subjective measurement that is derived entirely by people listening to the calls and scoring the results from Plastics subsidiary in May 1999. The company is in the process of selling its only remaining equipment, located in Gardena, through private sales or public auction expected to be completed by the end of October 1999. The sale of the Gardena assets is expected to net approximately $2 million in proceeds. The complete liquidation of the company's assets was necessitated by the company's inability to service its debt. The company has been in payment default of $9 million of 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". since December 1998 and has been unable to service approximately $4 million of equipment debt since March 1999. The company also defaulted, and the banks accelerated payment of approximately $16 million of senior secured bank debt on Feb. 2, 1999; however the banks continued to provide working capital on a completely discretionary basis to effect the liquidation. Following the above transactions, Compass and its subsidiaries will have approximately $15 million of secured senior and subordinated debt outstanding and approximately $4 million of trade and other unsecured liabilities. Compass Plastics & Technologies Inc., through its wholly-owned subsidiary, AB Plastics Corp., was a contract manufacturer and assembler of custom injection-molded plastic components in the western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century and Baja, Mexico. The company manufactured the plastic exteriors of computer monitors, televisions, and other consumer products. The statements in this news release may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ from predicted results. These risks are further discussed in the form 10-Q Form 10-Q See 10-Q. and annual report filed by the company with the Securities and Exchange Commission. The company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements. |
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