Fingermatrix emerges from Chapter 11 bankruptcy.DOBBS FERRY Dobbs Ferry, village (1990 pop. 9,940), Westchester co., SE N.Y., on the Hudson River, a suburb of New York City; inc. 1873. It is mostly residential but has light industries and research facilities. , N.Y.--(BUSINESS WIRE)--April 17, 1995--Fingermatrix 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 EBB:FINXC) emerged Monday from its 19 months in Chapter 11 bankruptcy when the Trustee's Plan of Reorganization approved by the U.S. 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. March 31 became effective. Hal M. Hirsch, trustee in bankruptcy trustee in bankruptcy n. a person appointed by a bankruptcy court to supervise the affairs of person or business which is in bankruptcy, determine both assets and debts, marshal (gather) and manage the assets if necessary, and report to the court. for the company since last August, said the new management, headed by Tom Harding, president, will now assume full responsibility for the company's operations, reporting to a new board of directors which will be named shortly. Harding was brought aboard by Hirsch last Dec. 5. Under the recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. called for in the Plan, 3 million new common shares with attendant A-Warrants will be distributed later this week. Fifty percent of that equity will remain in the hands of present shareholders, while the remainder will go to creditors, and investors and lenders who have provided capital for the company's exit from Chapter 11 and for on-going operations. The new shares will begin trading Tuesday, April 18 under FINX FINX Finance and Miscellaneous Functions . Old shares are null and void as of this date in accordance with the Plan of Reorganization. Although the Plan involves approximately a one-for-12 reverse split in the common stock, each new share carries with it 1 2/3 A-Warrants exercisable at $1.00 per share for nine months. And, if the holder exercises the A-Warrants, he will receive one B-Warrant for each two A-Warrants exercised, with the B-Warrants exercisable at $2.00 over 21 months. The Plan includes settlement of numerous claims made by Michael Schiller, the former chairman and president, and members of his family who were related to the company. Schiller and his son, Scott Schiller, formerly manager of investor relations Investor relations The process by which the corporation communicates with its investors. , were both discharged by the trustee last November. Fingermatrix invented electronic fingerprinting technology and has a variety of patents, including two covering the most advanced technology in the field, Hirsch said. All the company's systems and devices are currently being upgraded and refined, with the first advanced system slated for introduction before the end of this month, he added. Hirsch will shortly transfer his control of the company to the new board of directors and management, and conclude his trusteeship except for certain limited functions. CONTACT: Official Fingermatrix Equity Holders Committee Gordon Molesworth, Chairman, 520/625-0035 |
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