INTELLICALL MAKES ANNOUNCEMENTS
INTELLICALL MAKES ANNOUNCEMENTS DALLAS, April 6 /PRNewswire/ -- Intellicall, Inc. (NYSE: ICL)
announced today the appointment of William J. Collinsworth as chief financial officer and interim chief operating officer. Collinsworth, 41, previously served as the company's chief financial officer, vice president of finance and administration and secretary, from February 1988 to March 1991. The company had earlier announced the appointment of James P. Hassett as interim president and chief executive officer, and he continues in that role.
Nabil N. El-Hage, chairman of Intellicall's audit committee, said, "Intellicall is pleased that Mr. Collinsworth has agreed to return to the company and to join the company's management team. His technical expertise and reputation for integrity, along with his intimate knowledge of Intellicall, is a very positive and stabilizing factor for the company at this time." The company also announced that it does not expect to file its annual report on Form 10-K by April 14, 1992, but that it will endeavor to do so as soon as practicable. The company had previously indicated that the filing of its annual report would be delayed as a result of the suspension of four of the company's senior officers and difficulties in obtaining certification of the company's financial statements prior to the completion of the investigation by the company's audit committee into the company's failure to disclose publicly that the company had been in default under its loan agreements. James P. Hassett, the company's interim president and chief executive officer, said that the interim management team had concluded that further time would be required to complete the company's financial statements and to enable management to provide the representations that the company's auditors require to issue an opinion on the company's financial statements. The company's failure to file its annual report on a timely basis places the company in violation of its reporting requirements under the federal securities laws and its listing obligations to the New York Stock Exchange. The company also said that it had been informed by its bank lenders that they would make no further advances to the company under it revolving credit facility until, at the earliest, the completion of the investigation by the company's audit committee. El-Hage indicated that the audit committee expected to complete its investigation by April 11. The company's lenders had previously granted the company temporary waivers of certain covenant violations. The temporary waivers expired March 31, 1992, and have not been renewed. The company's management is continuing to negotiate with the company's lenders to obtain permanent waivers and an extension of the bank line of credit. Finally, the company said that it had received an amended complaint in connection with a previously pending shareholder class action in federal district court in Dallas. The amended complaint alleges violations of the federal securities laws and state law and seeks, in addition to matters as previously asserted, the recovery of damages relating to the company's failure to disclose that it had been in violation of certain covenants under its lending agreements. The class actions, which were originally filed in April 1991, were originally asserted against the company, along with company Chairman B. Michael Adlers, suspended president and chief executive officer R. Stephen Polley and Collinsworth. The newly amended complaint does not allege any involvement by Collinsworth in the company's failure to disclose the loan covenant violations, which occurred after Collinsworth left the company in March 1991. Intellicall, Inc. is a diversified telecommunications company providing innovative technology and services to private pay telephone networks throughout the United States, and is the nation's leading manufacturer of privately owned pay telephones, automated operator systems and call processing systems. The company's common stock is traded on the New York Stock Exchange under the symbol "ICL" and is listed in alphabetical quotations as "Intellicall" or "Intelcal." -0- 4/6/92 /CONTACT: Jody Kendrick or Larry Meltzer of Meltzer & Martin Public Relations, 214-953-0808, for Intellicall/ (ICL) CO: Intellicall Inc. ST: Texas IN: TLS SU: PER SM -- NY059 -- 5387 04/06/92 12:57 EDT
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|Date:||Apr 6, 1992|
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