WAST news, what are these boys up to now?
WasteMasters, Inc. to Take Possession of Rye Creek Landfill
EL RENO, Okla., Feb. 14 /PRNewswire/ -- WasteMasters, Inc. (OTC Bulletin Board: WAST - news) announced today that the bankruptcy court overseeing
Continental Investment Corporation's (OTC Bulletin Board: CICG - news) bankruptcy approved Continental's plan of reorganization on February 10, 2000.
Previously it was announced that WasteMasters, Inc. and Continental Investment Corporation had received approval from the bankruptcy court to rescind the
original stock purchase agreement between the parties. Pursuant to the rescission, WasteMasters would pay Continental and Continental would return certain assets
and shares. The initial funds WasteMasters, Inc. provided to Continental Investment Corporation was paramount to the approval of their plan of reorganization last
Thursday.
The Rye Creek landfill generates approximately $600,000 in revenue and nets 7% in after tax net income. Sales efforts at the landfill have been kept at a minimum
for several years because Continental did not believe it possessed the expertise to operate landfills effectively. WasteMasters, Inc.'s personnel will implement a more
aggressive marketing plan designed to increase revenue and net income results.
Douglas Holsted, President of the Company, stated: ''I congratulate Continental on getting out of bankruptcy. The battles they have had to fight in the past year and
a half were difficult and their board should be commended for sticking it out and causing it to happen. As far as we are concerned, Rye Creek is a good asset. I'm
looking forward to developing that region of the country.''
The plan also established a new workable relationship with WasteMasters' provider of bonds -- Frontier Insurance. Frontier had initially opposed Continental's plan
because of several contractual defaults between the companies. Frontier agreed to the plan after settling many of these issues with WasteMasters.
''Rye Creek is a vital landfill for WasteMasters in that the operation generates revenues and net income. This is not a development or contingent on permitting -- it is
a currently operating landfill,'' said Leon Blaser, the Chairman of WasteMasters. ''This is a small but significant step for re- building WasteMasters' operations.''
For further information contact Douglas Holsted, President of WasteMasters, Inc. at (405) 262-0800.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release which are not historical facts may
be ''forward-looking statements'' that involve risks and uncertainties which could cause actual results to differ materially from those currently anticipated. For
example, statements that describe WasteMasters' hopes, plans, objectives, goals, intentions, or expectations are forward- looking statements. The forward-looking
statements made herein are only made as of the date of this news release. Numerous factors, many of which are beyond WasteMasters' control, will affect actual
results. WasteMasters undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. This news release
should be read in conjunction with WasteMasters' annual report on Form 10-KSB for the fiscal year ended December 31, 1998 and other filings with the U.S.
Securities and Exchange Commission by WasteMasters.
SOURCE: WasteMasters, Inc.
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