Printer Friendly

AMERIWOOD, ATLANTIS GROUP CONCLUDE AGREEMENT; CLASS ACTION SUIT SETTLED

AMERIWOOD, ATLANTIS GROUP CONCLUDE AGREEMENT; CLASS ACTION SUIT SETTLED
 GRAND RAPIDS, Mich., April 13 /PRNewswire/ -- Ameriwood Industries International Corporation (NASDAQ: AWII), formerly Rospatch Corporation, concluded an agreement with Miami-based Atlantis Group, Inc. (AMEX: AGH), Friday, April 10, ending their protracted litigation dating back to 1988, when Atlantis first tried to gain control of Ameriwood.
 Ameriwood is one of the country's largest producers of ready-to- assemble furniture and one of the leading suppliers of stereo speaker cabinets to original equipment manufacturers of consumer electronics. It has plants in Dowagiac, Mich. and Tiffin, Ohio.
 Under the agreement, Ameriwood acquired Atlantis' 19.7-percent stake in Ameriwood -- 498,100 shares -- and settled its litigation with Atlantis by paying Atlantis approximately $10,130,000.
 This payment required no assumption of additional debt by Ameriwood, Neil L. Diver, the company's chairman, said.
 "It is indicative of the company's performance since 1990 that the payment came from internally generated cash," he said.
 Ameriwood has also settled for $5,500,000 a related class action suit brought in 1990. Certain expenses will be paid in cash; the remainder of the $5.5 million will be paid in cash or stock at Ameriwood's option.
 The settlement expense of the Atlantis and class action suits -- including accrual for estimated 1992 legal and professional expenses -- will be recorded in the fourth quarter of 1991.
 All litigation between Ameriwood and Atlantis and the other settling parties has been dismissed. In addition, the court has entered an order shielding Ameriwood from payment of any additional funds in connection with Atlantis' continuing lawsuit of the non-settling parties, thereby ending Ameriwood's exposure in the matters.
 "The importance of these settlements is three-fold," Diver said. "It has resulted in our acquiring and retiring Atlantis' shares in Ameriwood; it puts an end to the litigation that has engulfed us since 1988; and it enables us to stop diverting time, effort and money in defending against costly litigation and to concentrate fully now on managing the company."
 -0- 4/13/92
 /CONTACT: Joseph J. Miglore, president, 616-530-6300, or Neil L. Diver, chairman, 818-449-2323, both of Ameriwood Industries International Corporation; or Gabriel Werba or Michael Carmichael of Gabriel Werba & Associates, 313-259-4947, for Ameriwood Industries International Corporation/
 (AWII AGH) CO: Ameriwood Industries International Corp.; Atlantis Group, Inc. ST: Michigan, Florida IN: HOU SU:


KK-JG -- DE023 -- 7996 04/13/92 18:15 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:Apr 13, 1992
Words:392
Previous Article:DAMES & MOORE ANNOUNCES NEW YORK STOCK EXCHANGE LISTING
Next Article:NEW YORK STOCK EXCHANGE CLOSING, MONDAY, APRIL 13 /PRN/


Related Articles
ROSPATCH RECOMMENDS OUSTER OF TWO DIRECTORS
ATLANTIS FAILS IN TRY TO DISMISS $47 MILLION LAWSUIT BY AMERIWOOD
AMERIWOOD ACQUIRES ITS STOCK HELD BY ATLANTIS; SETTLES ALL PENDING LAWSUITS
AMERIWOOD POSTS RECORD SALES, SHARP OPERATING INCOME RISE; SETTLEMENT OF LITIGATION CAUSES 1991 NET LOSS
AMERIWOOD INDUSTRIES POSTS RECORD FIRST-QUARTER SALES, NET INCOME
AMERIWOOD INDUSTRIES SIGNS LICENSING AGREEMENT TO LAUNCH LINE OF MEMBERS ONLY BRAND FURNITURE
AMERIWOOD INDUSTRIES POSTS RECORD SALES, EARNINGS IN SECOND QUARTER, FIRST HALF
AMERIWOOD SPECIAL COMMITTEE COMPLETES REVIEW OF LEGALITY OF DAY TRUST PROPOSAL
AMERIWOOD, FORMER COUNSEL SETTLE CLAIMS
On the firing line: Ameriwood execs get heat for results.

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