Printer Friendly

STAT-TECH INTERNATIONAL FILES FOR RELIEF UNDER CHAPTER 11 OF FEDERAL BANKRUPTCY CODE

 STAT-TECH INTERNATIONAL FILES FOR RELIEF
 UNDER CHAPTER 11 OF FEDERAL BANKRUPTCY CODE
 PUEBLO, Colo., June 11 /PRNewswire/ -- Stat-Tech International Corp. today announced that it has filed for relief under Chapter 11 of the Federal Bankruptcy Code in U.S. Bankruptcy Court for the District of Colorado.
 A.M. Marson, acting chief executive officer of the company, said, "The board of directors authorized the filing because the company is running out of operating funds." Marson continued, "Under the protection of Chapter 11, Proactive Partners, L.P. of San Francisco, Calif., has agreed to loan the company up to $600,000. The loan will be used to fund the company's ongoing operations for the next five months and to pursue claims the company holds against Raynard M. Fenster, his wife, Therese M. Lamb, and Hayden H. Thompson. These individuals are former members of the company's management who have been charged with defrauding the company and its shareholders in a lawsuit recently filed by the company in Federal District Court, Denver.
 "The loan by Proactive would mature five months after it is authorized by the Bankruptcy Court, and would be subject to the company meeting certain performance criteria and other conditions. The loan from Proactive would be secured by a lien on all of the company's assets, as well as the company's claims against third parties. Bankruptcy Court approval is a condition to the
company obtaining the financing. The exact terms of the loan have yet to be finalized."
 Marson added, "With this funding, the company will pursue the marketing of its products and finalize development of its aviation wick in order to obtain FAA approval. Testing to date of the aviation wick has been favorable.
 The loan is viewed by the company as an interim step toward the sale of all of the company's business assets, in a competitive bidding process, pursuant to a Chapter 11 plan. Proactive has indicated its intention to submit a bid for the company's assets and to continue to build the company's business."
 Marson cautioned, "While this development represents a positive step for the company, it is not possible to ascertain at this time what value, if any, will be available to the company's shareholders under the Chapter 11 plan; it is possible that shareholders will receive little or no value under any plan."
 Stat-Tech International Corp. is engaged in the application of advanced electroconductive materials for the control and elimination of electrostatic charges.
 -0- 6/11/92
 /CONTACT: A.M. Marson of Stat-Tech International, 719-534-5005/ CO: Stat-Tech International Corp. ST: Colorado IN: SU: BCY


LR -- NY072 -- 9391 06/11/92 16:14 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 11, 1992
Words:437
Previous Article:UNIVERSAL FOODS DECLARES DIVIDEND
Next Article:PHILLIPS PUBLISHING WINS DISMISSAL OF LIBEL SUIT; NATIONAL LIFE DEFEATED IN MAJOR VICTORY FOR FIRST AMENDMENT
Topics:


Related Articles
Rehabilitation or liquidation: consumers' choices in bankruptcy.
STAT-TECH INTERNATIONAL ANNOUNCES PRELIMINARY RESULTS; COMMENTS ON LEGAL PROCEEDINGS, TESTING OF AVIATION WICK, AND STATUS OF AUDIT REPORTS
AGLC Obtains Interim Relief in Natural Gas Marketer's Bankruptcy.
AGLC Obtains Further Interim Relief In Natural Gas Marketer's Bankruptcy.
Bankruptcy law for accountants.
Tax and pension claims in bankruptcy.
Announcement from M. Fabrikant & Sons and Fabrikant-Tara International.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters