Genesis Announces Debt Repayments.Business Editors DAYTON Dayton, city (1990 pop. 182,044), seat of Montgomery co., SW Ohio, on the Great Miami River where it is joined by the Stillwater River; inc. 1805. It is the trade center for a fertile farm area, but is best known for its involvement with industry, invention, and , Ohio--(BUSINESS WIRE)--Feb. 16, 2000 Genesis Worldwide, Inc. (NYSE NYSE See: New York Stock Exchange :GWO GWO Good Working Order GWO Google Website Optimizer GWO Ginninderra Wind Orchestra (Canberra, Australia) GWO General Watch Officer GWO Gravel Watch Ontario GWO Gateway Wrestling Organization ) announced today that it had repaid approximately $18.0 million of its outstanding bank indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . This 17% reduction in its total debt of $103 million is a result of closing two previously announced transactions. The Company completed the sale of its Machine Tool division at a final purchase price of $7.74 million in cash. No further adjustments to the purchase price are anticipated. The Company used $7.55 million from the proceeds of this sale to repay its bank indebtedness. The Company also completed the distribution of assets from the termination of two of its defined benefit pension plans. The plans were replaced on January 1, 1999 with more modern cash balance retirement programs. The Company received $18.8 million as its share of plan assets, of which $4.6 million has been transferred into retirement plan trusts to fund the Company's future cash contributions to its current retirement plans. The Company projects that sufficient assets are available in its retirement plan trusts to fund the Company's contributions to these plans for at least the next 4-5 years. The Company used $10.4 million of the remaining portion of the distribution to repay its bank indebtedness, with the remaining $3.8 million to be used to pay taxes and other costs of the transaction. Richard E. Clemens, President and Chief Executive Officer of Genesis stated, "Completion of the sale of the Machine Tool operation and the final distribution of the assets from the terminated pension plans has allowed us to repay nearly $18.0 million of our bank indebtedness. By using funds generated from these transactions to repay indebtedness, we are able to reduce the Company's leverage and future interest costs. These transactions resulted from our plan to liquidate To pay and settle the amount of a debt; to convert assets to cash; to aggregate the assets of an insolvent enterprise and calculate its liabilities in order to settle with the debtors and the creditors and apportion the remaining assets, if any, among the stockholders or owners of the under-performing assets and to re-engineer our balance sheet. We have now focused our financial and personnel resources on the growth and enhanced profitability of our coil processing equipment and services businesses". Genesis Worldwide Inc. engineers, manufactures and services high-quality metal coil processing and roll coating equipment in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and the United Kingdom. In addition to historical information, this press release contains various forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , involving risks and uncertainties, which could cause actual results to differ materially from these statements. These risks include, but are not limited to, changes in economic conditions, interest rates, price and product offering competition from domestic and foreign entities, customer purchasing patterns, labor costs, product liability issues and other legal claims and governmental regulatory issues. Words identifying forward-looking statements include "plan", "believe", "except", "anticipate", "project", "intend", "estimate" and other expressions which are predictions or indications of future events or trends which do not relate to historical matters. For further information contact Richard E. Clemens, 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. , or Karl Frydryk, CFO See Chief Financial Officer. , at (937) 910-9300. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion