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 CONROE, Texas, Dec. 31 /PRNewswire/ -- Albara Corp. (the "company") (NASDAQ Small Cap: ALAB) announced today that its wholly owned subsidiary, Hardware That Fits, filed its Plan of Reorganization (the "Plan") and Disclosure Statement with the United States Bankruptcy Court for the Southern District of Texas on Dec. 23, 1993. The Plan includes the consummation of a settlement agreement which was reached with Dataproducts Corp. ("Dataproducts") on Dec. 20, 1993, as well as a substantial capital infusion by the company. The agreement provides for a settlement of all claims and counterclaims between the company, Hardware That Fits and Dataproducts and provides for a lump sum payment of $275,000 along with the execution of a promissory note in the amount of $275,000 payable to Dataproducts over a three year period commencing in February 1994 secured by certain assets of the company.
 It is assumed for the purposes of the Plan that the company will be able to successfully complete the securing of either debt or equity financing in the amount of approximately $750,000 within the near future, although no assurance can be made that such financing will be secured and no commitments for financing have been made to date. The financing secured by the company will provide the means for execution of the reorganization. In addition, the company has agreed to issue up to 100,000 of its common shares to the unsecured creditors of Hardware That Fits to be distributed on a pro rata basis. Such shares are subject to certain restrictions including a restriction that the shares may not be sold, traded or transferred for a two year period from the date of issue.
 The reorganization of Hardware That Fits as outlined in the Plan would materially affect the financial statements of the company. Proforma adjustments based on the Plan filed with the bankruptcy court have been applied to the company's most recent balance sheet financial statement dated Sept. 30, 1993 as filed in the company's third quarter 10-QSB. The primary impact of the proposed reorganization is to convert approximately $3,275,696 of existing accounts payable debt to equity and to record a forgiveness of debt of approximately $155,000. The equity of the company would increase from a deficit of ($2,369,698) as of Sept. 30, 1993 to a surplus of approximately $1,060,998 on an adjusted proforma basis. In addition, the forgiveness of debt would result in a one-time extraordinary gain for the company totaling approximately $155,000. The extraordinary gain is not expected to be reflected in the results of the company's operations until the first quarter of 1994. No assurance can be given that the Plan will be accepted or implemented, or that the financial effect described above will be realized.
 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 the company'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- 12/31/93
 /CONTACT: Real Provencher of Albara, 409-539-2992/

CO: Albara Corp.; Hardware That Fits ST: Texas IN: CPR SU:

BB -- DV002 -- 8257 12/31/93 08:00 EST
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Publication:PR Newswire
Date:Dec 31, 1993

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