EBIZ Enterprises Inc. Gains Confirmation of Its Plan of Reorganization.Business Editors & High-Tech Writers HOUSTON--(BUSINESS WIRE)--April 15, 2002 EBIZ EBIZ Electronic Business Enterprises Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :EBIZ), a provider of products and services to the business computer market, announced today that its plan of reorganization has been confirmed by the 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. in Phoenix. The bankruptcy court entered its order approving the reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. on April 11, 2002 with the effective date of the plan set for thirty (30) days thereafter. The action of the bankruptcy court completes the reorganization process started by EBIZ in September 2001. As a result of the reorganization, all of the assets and business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets of Jones Business Systems Inc. (JBSi), a 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. of EBIZ, will be transferred to EBIZ, and new EBIZ will emerge as the sole reorganized entity through which continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the will be conducted. A significant impact of the successful reorganization is the elimination of a substantial amount of the unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. that EBIZ has on its balance sheet. Unsecured creditors are to receive cash payments over a two (2) year period equal to 7% of the balance owed at the time that the reorganization was begun. Creditors also receive a pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. equity participation in the new EBIZ through newly issued shares and warrants. In addition, certain expenses attributable to the reorganization process through the bankruptcy court will be eliminated. "The cooperation we received from our customers, vendors, creditors and shareholders was critical to our success in completing the reorganization process. We sincerely thank each of them for their support," said Bruce Parsons, 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 EBIZ. Parsons is encouraged about EBIZ's future prospects: "This reorganization plan gives us the fresh start that we need. We believe that our debt load following the reorganization is manageable. Now we expect to execute on our strategic and operational plans that have been established through this process." Information about the reorganization plan is available on the company's Web site at http://www.ebizenterprises.com/reorgplan and complete information will be released when the company makes its 8K filing during the next two weeks. About EBIZ Enterprises Incorporated: EBIZ Enterprises Incorporated (www.ebizenterprises.com) is a national provider of products and services for the business computer market. EBIZ manufactures the Terian product line of computing platforms. Terian systems provide the latest open architecture hardware in appliance server and white box built-to-order and cluster configurations. EBIZ is located at 13715 Murphy Road Suite D, Stafford, Texas, 77477 and may be reached by phone at 800/876-8649 or via e-mail at sales@ebizmart.com. This press release contains statements that constitute "forward-looking statements" as that term is defined by the United States 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 (the "Reform Act"). Specific forward-looking statements contained in this press release include, but are not limited to, the ability of EBIZ to manage its debt load and to execute its strategic and operational plans, the ability of EBIZ to grow its business and improve its financial performance and the measure of suitability and acceptance of EBIZ products in the market. Forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of EBIZ Enterprises Inc. to be materially different from those expressed or implied by such forward-looking statements. Other factors include those risk factors and cautionary statements made in EBIZ Enterprises Inc.'s annual report on Form 10-KSB/A for the period ended June 30, 2001 and the quarterly report on Form 10-QSB for the period ended Dec. 31, 2001 and other factors that EBIZ Enterprises Inc. is currently unable to identify or quantify, but may arise or become known in the future. In addition, the foregoing factors may affect generally EBIZ Enterprises Inc.'s business, results of operations and financial position. Forward-looking statements speak only as of the date the statement was made. EBIZ Enterprises Inc. does not undertake and specifically disclaims any obligation to update any forward-looking statement. |
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