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Salient 3 Communications Reports Third Quarter Net Asset Value.

Salient 3 Communications, Inc., (BULLETIN BOARD: STCIA) today announced that as of the end of its third fiscal quarter, ended September 27, 2002, its estimated net assets in liquidation per outstanding share were $1.34. This value represents a decrease of $0.18 per share from the estimated net assets in liquidation of $1.52 as of June 28, 2002, reported in the Company's Form 10-Q as filed with the Securities and Exchange Commission for the second quarter.

The third quarter decrease in net assets in liquidation per share primarily results from a reduction in the estimated realizable value of the building in Aurora, CO that the Company has been attempting to sell since mid 2000. Due to the unfavorable real estate market, the offering price was reduced and the Company has signed a letter of intent to sell the building at the reduced valuation. The reduction in the building's valuation, less the related tax and other adjustments, caused a decrease in net assets in liquidation of $1,148,000, or $.18 per share. The Company expects to close the sale transaction in December 2002.

The Company cautioned that under liquidation basis accounting, all values of realizable assets and settlement amounts of liabilities are estimates, subject to continual reassessment based on changing circumstances. Therefore, it is not presently determinable whether the amounts realizable from the remaining assets or the amounts due in settlement of obligations will differ materially from the amounts shown on the statement of net assets in liquidation as of September 27, 2002.

The Company expects to make further distributions as specific events provide available cash at a level where the Board of Directors can properly authorize a distribution, consistent with its obligations under Delaware rules and regulations governing companies in liquidation.

In accordance with SEC Regulation FD (Fair Disclosure), Salient 3 will not respond to individual investor inquiries regarding the timing, process or ultimate outcome of its liquidation process. The Company will, however, issue announcements whenever material events occur in its liquidation process that could have a potential impact on its net assets in liquidation.

Statements made in this press release which are not historical, including statements regarding the timing and outcome of the sale of the Company's assets, settlement of its obligations, its dissolution and liquidation and the expected distributions therefrom, are forward-looking statements and as such are subject to a number of risks and there can be no assurance that the expectations or results reflected in those statements will be realized or achieved. Such risks include, without limitation, post-closing indemnification obligations, realization of notes receivable and settlement of all state and Federal tax obligations. Please see the Company's 2001 Form 10-K (and other reports filed pursuant to the Securities Exchange Act of 1934) for additional disclosure regarding such risk factors.

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CONTACT: Paul H. Snyder, Sr. VP & CFO of Salient 3 Communications, +1-610-856-5500
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Publication:PR Newswire
Date:Nov 8, 2002
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