Donlar Announces Final Negotiations With Major Noteholders.Business Editors BEDFORD PARK Bedford Park is the name of several places around the world:
Donlar Biosyntrex Corporation (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : DBSY), a world leader in green chemistry, products and technology, today announced that the Company and its primary investors/noteholders have entered into final discussions and have agreed in principal to reduce the Company's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , bolstering its balance sheet. Donlar's primary noteholders are finalizing discussions leading to an agreement that would significantly reduce the Company's debt. Two of the noteholders, who are also principal investors of the Company, have agreed to terms for the conversion of their debt of $9 million each for a total of $18 million into preferred securities at an average conversion price of $0.68 per share. Following this conversion and subject to the major noteholders' final approval, the total outstanding debt of the Company will be reduced to approximately $18 million. This major debt reduction step is expected to be referenced in the Company's financial statement for the first quarter ending March 31, 2002. Noteholders of the remaining debt have also signaled acceptance of terms to an average conversion price of $0.68 per share. Larry Koskan, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Donlar said, "The negotiations we have entered into with our major noteholders represent a significant step forward in the reduction of the Company debt and a concurrent strengthening of our balance sheet. These discussions are another clear indication of the confidence that our noteholders have in Donlar and its future." About Donlar Donlar Biosyntrex Corporation is at the forefront of providing a new class of protein biopolymers that are non-hazardous, non-toxic, hypoallergenic hy·po·al·ler·gen·ic adj. Having a decreased tendency to provoke an allergic reaction. hypoallergenic (hī´pōal´urjen´ik), adj , environmentally friendly Environmentally friendly, also referred to as nature friendly, is a term used to refer to goods and services considered to inflict minimal harm on the environment.[1] and biodegradable. The Company's thermal polyaspartate (TPA (Transient Program Area) See transient area. TPA - Transient Program Area ) biopolymers are protected by 140 Company owned patents covering applications in numerous markets, including oil field operations, fertilizers, detergents and water treatment. Donlar's beta-protein biopolymers are manufactured in its 50,000 square foot facility located in Peru, Illinois. (www.donlar.com) This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in the forward-looking statements, which involve a number of risks and uncertainties. The contents of this release should be considered in conjunction with the risk factors in Donlar Biosyntrex's most recent filings with the Securities and Exchange Commission on Forms 10-QSB and 10-KSB and current reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. . |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion