First Central Financial Makes Announcement.LYNBROOK, NY--(BUSINESS WIRE)--Oct. 1, 1997--In a Current Report 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. filed with the Securities and Exchange Commission on Sept. 30, 1997, First Central Financial Corp. (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. :FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. ) reported that McGladrey & Pullen, LLP LLP - Lower Layer Protocol has resigned as First Central's independent auditor Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. for the fiscal year ended Dec. 31, 1997. McGladrey & Pullen has advised First Central that it resigned its engagement because First Central no longer satisfied McGladrey & Pullen's client profile for insurance companies. There were no disagreements with McGladrey & Pullen on any matter of accounting principals or practices, financial statement disclosure or auditing scope or procedures. McGladrey & Pullen has informed First Central that it will be available to assist with a smooth transition to new auditors. First Central has not yet engaged a replacement independent auditor to conduct its annual audit. As previously reported, First Central has developed a restructuring plan. The plan requires the raising of significant additional capital and the restructuring of its outstanding 9 percent Convertible Subordinated Debentures due 2000 which are currently in default. First Central's insurance company subsidiary, First Central Insurance Co. has ceased writing new business but continues to process renewals and service existing business. There can be no assurance that First Central will be able to attract the necessary additional capital or accomplish its restructuring plan. First Central Insurance is operating under a stipulation with the Insurance Department of the State of 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 which provides for the completion of First Central's restructuring plan by Feb. 11, 1998. The Insurance Department retains the power to commence proceedings seeking the earlier rehabilitation rehabilitation: see physical therapy. or liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of First Central Insurance should the financial condition of First Central Insurance or other circumstances at the time warrant such action. First Central does not fully satisfy the American Stock Exchange's financial guidelines for continued listing and there can be no assurance that the listing will be continued. Except for historical information, this news release contains forward-looking statements which involve unknown risks and uncertainties that may cause First Central's actual results or outcomes to be materially different from those anticipated and discussed herein. Important factors that might cause such differences are discussed in First Central's filings with the Securities and Exchange Commission. CONTACT: First Central Financial Corp., Lynbrook Vincent Esposito, Controller 516/593-7070 |
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