Printer Friendly

ALBARA ANNOUNCES DISPUTE WITH SUPPLIER

 CONROE, Texas, May 5 /PRNewswire/ -- Albara Corp. (NASDAQ-Small Cap Market: ALAB) announced today that it has filed a series of counterclaims in response to a complaint previously filed in United States District Court for the Central District of California by one of the company's former product suppliers, Dataproducts Corp. (Dataproducts). The counterclaims allege breach of contract and fraudulent and negligent misrepresentation by Dataproducts. The company seeks damages resulting from these counterclaims which total in excess of $1,000,000.
 Prior to the filing, the company engaged in extensive negotiations with Dataproducts in an effort to resolve claims made by the company against Dataproducts arising from the conduct of the existing business relationship. Over the course of such negotiations, the company significantly reduced the outstanding balance of the line of credit extended to the company by Dataproducts, but has delayed further reductions pending the resolution of its claims against Dataproducts. The complaint filed by Dataproducts seeks to accelerate repayment of the line of credit which it alleges was approximately $700,000 at the time of filing of the complaint. The line of credit would have been payable during the normal course of business over the next few months and has been included as accounts payable in the company's prior financial statements. A material portion of the company's assets are pledged as collateral associated with this line of credit.
 In addition, the company announced today that Dataproducts has filed an application with the court seeking the mandatory turnover of the pledged collateral associated with the line of credit. The company is evaluating Dataproducts' application and intends to contest such application.
 Sales of products manufactured for the company by Dataproducts have been declining as these products have reached their normal end-of-life and currently contribute less than 6 percent of the company's monthly revenues.
 The company has two subsidiaries: Hardware That Fits and Helix Technologies. Hardware That Fits is a direct response reseller of Apple Macintosh computers and peripherals such as monitors, printers, scanners and hard drives. Hardware That Fits also sells a line of digital imaging computer products under its own brand name RealTech which offer computer users added value at competitive prices. Hardware That Fits generates the bulk of Albara's revenues and has been in operation since 1989. Helix Technologies, is a developer and publisher of relational database software products for the Macintosh computer. The flagship product at Helix Technologies is Helix Express, a powerful database development environment for the Macintosh.
 The company's common stock trades on the NASDAQ Small-Cap Market under the symbol ALAB.
 -0- 5/5/93
 /CONTACT: Holly Arbuckle of Albara, 409-539-2992/
 (ALAB)


CO: Albara Corp.; Dataproducts Corp. ST: Texas, California IN: CPR SU:

BB -- DV003 -- 4731 05/05/93 09:07 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 5, 1993
Words:454
Previous Article:SUMMER TRAVELERS SAVE UP TO 55 PERCENT ON MARRIOTT'S FAMILY ROOM; KIDS EAT FREE, KIDS STAY FREE, LATE CHECK-OUT, TOO!
Next Article:ALLISON/PRATT FORMALIZE A/F-X PROPULSION TEAM AGREEMENT
Topics:


Related Articles
ALBARA REACHES AGREEMENT TO ACQUIRE HELIX TECHNOLOGY
ALBARA ANNOUNCES FIRST QUARTER 1992 RESULTS
ALBARA ANNOUNCES AGREEMENT WITH CALCOMP
ALBARA CORP. ANNOUNCES SECOND QUARTER 1992 RESULTS
ALBARA ANNOUNCES PROPOSED PUBLIC OFFERING
ALBARA ANNOUNCES PROPOSED PUBLIC OFFERING
ALBARA ANNOUNCES SECONDARY PUBLIC OFFERING
ALBARA UPDATES STATUS OF LITIGATION
ALBARA CORP. UPDATES STATUS OF LITIGATION
ALBARA CORP. REPORTS SUBSIDIARY FILES CHAPTER 11

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