APM filed an S1 today, in which was buried this tidbit:
On or about June 4, 1999, Comdisco, Inc., a company that leases equipment, filed a complaint against DAS Devices and Applied Magnetics in the California Superior Court for the County of Santa Clara, alleging various causes of action:
- for recovery of personal property;
- to set aside a fraudulent transfer;
- to set aside a void transfer;
- for damages for breach of lease;
- for damages for breach of assumption agreement; and
- for an accounting.
The complaint alleges that DAS Devices breached a master equipment lease by failing to pay lease payments and that we breached our obligations to assume the obligations of DAS Devices under the lease. The complaint also alleges that we improperly transferred unique and proprietary magnetoresistive and giant magnetoresistive technologies from DAS Devices to us for inadequate consideration.
Comdisco seeks to recover:
- money damages, upon accelerating the obligations under the lease, of $5,144,948;
- an order restraining us from using or transferring the DAS technologies;
- interest; and
- attorneys fees and costs of suit.
We believe that we have valid defenses to the Comdisco claims and we intend to vigorously defend the suit. We cannot, however, assure you that we will prevail in this dispute. If Comdisco successfully prosecutes it claims against us, the resulting money damages and the restraint against our use of the DAS technologies could significantly harm our business and financial condition.
Lots of discussion about recent manuvers to obtain financing, most of which involve pricing of about $4/share for common. And they note that Samsung is their sole client at this point.
freeedgar.com |
