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ATTEQ came on as on IPO not too long ago,, after hitting 10 it went down hill from there to low of .02
Like RADAF to 1/2 from IPO by Merril or VLNT from high of 54 to 1/32...
The unique thing about this co is that they have awesome real revenues.. with 30 mill shares and small gloat...
ATTEQ has revenue of 500 million USD , as an IPO it came on the market and due to its loss of 150 million citing too aggreesive acquisitiions, declared chapter 11,,,
Recently it has been given a stay of execution by Chase Manhattan Bank for 20 million USD up to 50 million USD favilitating under strict rules..
This is a sheer speculation and I will let the press releases speak for it self... I do however have a call to the new CEO and will find out more details...
The forecasted revenue is 700 million USD,,
I discovered this last night on the web
search.main.yahoo.com
Alliance Entertainment -- $0.05 (OTC:AETTQ)
Alliance is the largest independent distributor of music in the nation. Sales of $500 million and a $2 million market cap. Compare with N2K. Watch for its emergence from bankruptcy and into the Internet.
-- 212/935-6662
Also found following news items;
Alliance approved for loan
ÿ
ÿ
By DOREEN HEMLOCK Business Writer
ÿÿÿÿÿ
ÿÿÿÿÿ Alliance Entertainment Corp., the music distributor that
filed for Chapter 11 reorganization early this week, on
Thursday got a $20 million boost.
ÿÿÿÿÿ A U.S. bankruptcy court judge in New York approved a
$20 million loan from a debtor consortium led by ***Chase
Manhattan****. The judge also set a July 30 hearing on another
$30 million from the group.
ÿÿÿÿÿ The money is the first of several financial injections
expected for the New York-based firm that seeks to
restructure and expand its Coral Springs warehouse
operations.
ÿÿÿÿÿ Alliance is seeking $1.3 million in tax incentives from Coral
Springs, Broward County and the state for adding 200 jobs at
its South Florida location. The expansion would consolidate
operations now performed in other U.S. sites.
ÿÿÿÿÿ The company also is discussing a $50 million equity
investment from an unnamed group, and it is trying to sell the
Red Ant record label to raise additional cash.
ÿÿÿÿÿ Alliance filed on Monday for Chapter 11 bankruptcy
protection, listing $512.4 million in assets and $536.6 million in
liabilities, as of March 31.
ÿÿÿÿÿ It blamed its financial problems on acquisitions during a
period of little or no growth in music sales in the United States.
The company lost nearly $150 million last year on sales of
almost $700 million.
ÿ
Copyright c 1997, Sun-Sentinel Company and South Florida Interactive, Inc.
Record company files for protection
ÿ
By RAFAEL LORENTE and DOREEN HEMLOCK Staff Writers
ÿÿÿÿÿ CORAL SPRINGS -- Alliance Entertainment, in line to
receive $1.3 million of taxpayer money, filed for Chapter 11
bankruptcy court protection on Monday.
ÿÿÿÿÿ Alliance, an international distributor of compact discs and
other music products, says it will emerge from its reorganization
stronger and will still seek tax incentives to expand in Coral
Springs.
ÿÿÿÿÿ ''We're going to pursue what any business would pursue in
terms of getting all kinds of support,'' Chief Operating Officer
Eric Weisman said.
ÿÿÿÿÿ Government officials differed over what the restructuring
means.
ÿÿÿÿÿ ''Certainly, with what's happened up to this point, you have
to question whether we should be giving them incentives,''
County Commissioner John Rodstrom said.
ÿÿÿÿÿ Coral Springs Mayor John Sommerer said he is not
worried because the incentives are based on performance. The
company has provided jobs in the city for two years and
improved a property in the corporate park, he said.
ÿÿÿÿÿ ''As long as they continue to remain in business and create
jobs here in Coral Springs, it's a positive,'' he said.
ÿÿÿÿÿ On Monday, at the company's sprawling complex here,
employees gathered to hear news about the future. Executives
said they intend to become profitable again.
ÿÿÿÿÿ Alliance filed for reorganization in U.S. Bankruptcy Court
in New York on Monday, listing $536.3 million in liabilities,
compared with $512.2 million in assets as of March 31.
ÿÿÿÿÿ Alliance, which employs 650 people locally and 1,300
worldwide, has already received thousands of dollars in waived
permit fees and free lawn service from a 1995 deal with Coral
Springs.
ÿÿÿÿÿ A package approved by the county commission and Coral
Springs in April involved $196,000 from the city, $260,000
from the county and $800,000 from the state. The money
would help Alliance consolidate more operations in Coral
Springs and save about $25 million yearly.
ÿÿÿÿÿ No tax money has been paid in the recent deal, however,
and the state has not approved its portion.
ÿÿÿÿÿ Government incentives to lure or retain companies have
become commonplace as cities and states compete for
employers. Some have been successful, while others have had
problems.
ÿÿÿÿÿ Palm Beach County's incentive fund for example, ran into
criticism after one company received $351,000 and then
closed amid allegations of fraud.
ÿÿÿÿÿ Norm Taylor, director of Broward's economic
development office, said the county's incentive packages are
based on performance.
ÿÿÿÿÿ
ÿÿÿÿÿ ''If the company hires the requisite number of people [200),
those people work for a year and the company pays all of its
taxes, then the company gets its incentives over four years,''
Taylor said.
ÿÿÿÿÿ The Broward Economic Development Council, which
makes recommendations on deals to the county, won Alliance
over suitors that included Nevada, California and Tennessee.
ÿÿÿÿÿ While the council negotiated with Alliance, the company's
stock fell from about $6 a share to 371/2 cents and its credit
rating was dropped several times.
ÿÿÿÿÿ James Garver, president of the Broward Economic
Development Council, could not be reached on Monday. But
he has said it is not his group's responsibility to screen
companies for financial soundness.
ÿÿÿÿÿ The reorganization plan applies to Alliance's basic U.S.
distribution business. It excludes its Canada and United
Kingdom subsidiaries and Los Angeles-based record label
Red Ant.
ÿÿÿÿÿ Alliance got into financial trouble partly because of a
downturn in music sales last year.
ÿÿÿÿÿ The company had gone into debt buying up small music
distributors. It also paid more than $20 million last August for
Red Ant, a start-up record label that was to be its launchpad
into the highly profitable recording business. Alliance officials
now say they will likely sell Red Ant.
ÿÿÿÿÿ Alliance aimed to pay off its debts with profits from music
sales to such retailers as Barnes & Noble, Borders and small
music chain stores.
ÿÿÿÿÿ But sales dropped off. Compact disc sales rose only 2
percent, the slowest growth since CDs hit the market.
ÿÿÿÿÿ Many retail stores closed and others returned music to
distributors such as Alliance.
ÿÿÿÿÿ For the year as a whole, Alliance's sales dropped nearly
$30 million to $691.1 million. But higher operating costs and
bigger debt payments meant even larger losses.
ÿÿÿÿÿ It lost $148.7 million last year, down from a $5.3 million
profit the year before.
ÿÿÿÿÿ ''Essentially, they didn't have enough cash to absorb it all,''
said Edward A. White, an equity analyst at M.J. Whitman &
Co. in New York.
ÿÿÿÿÿ But analysts are optimistic that Alliance will survive -- and
maybe even prosper.
ÿÿÿÿÿ For starters, there's a need for distributors like Alliance to
ship music in small volumes -- on a frequent basis -- to
Mom-and-Pop stores and small chains.
ÿÿÿÿÿ
ÿÿÿÿÿ Alliance is likely to get new cash soon. The company said it
has some prospective buyers for Red Ant. It has a tentative
proposal for a $50 million equity investment.
ÿÿÿÿÿ And it is awaiting court approval this week for $50 million
in financing from a bank consortium led by Chase Manhattan.
ÿÿÿÿÿ ''I don't think they will be liquidated,'' White said.
ÿÿÿÿÿ But Alliance will need more than quick cash. It also must
slash its operating costs to better compete, analysts said.
ÿÿ
Copyright c 1997, Sun-Sentinel Company, Digital City South Florida and South Florida
NEW YORK, Aug. 14 /PRNewswire/ -- Alliance Entertainment Corp.
(OTC: AETTQ) announced today that it has received final Court approval for its
$50 million in debtor-in-possession (DIP) financing provided under a loan
agreement with a syndicate of banks led by *****The Chase Manhattan Bank****. The Court had previously approved, on an interim basis, the Company's use of $20
million of the $50 million DIP financing.
The financing will be used to support Alliance's domestic operations,
including the AEC One Stop Group, Concord Jazz, INDI, and One Way Records.
The DIP financing will provide adequate funds for the Company to purchase new
goods and services and provide higher levels of service to Alliance's
customers.
aent.com
Maybe long term hold? Market Cap 2ml/ Out shares 36-40 mil. Float?
Sales around 450-500 mil. For 6 cents.... Money committed from major bank.
New mgnt. Looks like a winner if they do everything right. Plus some hot internet co might take them out. CDNOW? AMAZON.COM? YAHOO?....
<<<According to Mr. Teller, "My decision to step down as president and chief executive of Alliance reflects that fact that, with the Board's recent approval of a business plan, the stage is now set for Alliance's successful emergence from Chapter 11. That has been my overriding goal since July, and now that the job is ***nearing completion***, I feel my work here is -- for the most part -- complete.
"The plan is the culmination of several months of work in which Mr. Weisman and senior management, under my direction, developed a plan that provides for the restructuring of Alliance as primarily a Florida- headquartered one-stop, budget and special products distribution company. With the Board's approval of that plan, I feel strongly that Eric Weisman and current management are more than capable of executing Alliance's plans both in the short and long term. I look forward to working with the Board to expedite Alliance's emergence from Chapter 11.">>>>
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