This just came over the businesswire.
(COMTEX) B: First Fidelity Capital Makes Announcement Regarding Appar
B: First Fidelity Capital Makes Announcement Regarding Apparel Technologies
Inc.; Issues Important Notice to All Shareholders of Apparel Technologies
BEVERLY HILLS, CALIF. (Oct. 30) BUSINESS WIRE -Oct. 30, 1998--The
investment-banking firm for Apparel Technologies Inc. (OTC BB:APTX),
First Fidelity Capital Inc. (FFC), which has a significant stockholding
in APTX, announced that on Friday morning it formally exercised its
right to obtain majority control of the board of directors of APTX and
to assume management of APTX, according to a provision of its
engagement letter with APTX, drafted by its former counsel, Sam Guzik
of Guzik and Associates in Century City, Calif., who is now being sued
by FFC for conflict of interest.
A spokesperson for FFC stated: "This exercise is done in an attempt
to protect all of the shareholders of APTX as a result of the following
recent developments: -- Sam Guzik is now the sole director and board
member of APTX; -- Kathy Van Ness apparently resigned as the
president and chief
executive officer over two months ago and the two other board
members resigned over three months ago, which has not been
disclosed; -- The current public filing does not accurately reflect
the current
status of APTX; -- FFC has proposed a workout plan in conjunction
with funding which
Sam Guzik on behalf of APTX has rejected, and Sam Guzik has
furthermore threatened to put APTX into bankruptcy immediately,
thus placing his own interest before the interest of the
shareholders, employees and creditors of APTX."
The FFC spokesperson stated that the above exercise is being taken to
prevent Guzik from filing an insolvency proceeding on behalf of APTX to
the detriment of its shareholders, and to ensure that the future
conduct of APTX conforms with all regulatory standards.
FFC added that since Van Ness became CEO of APTX, its stock price has
fallen from a high of $1.75 to just 8 cents, and that during her tenure
APTX incurred approximately $5 million in additional debt.
The Law Offices of Barry K. Rothman represents FFC.
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CONTACT: Law Offices of Barry K. Rothman, Los Angeles
Barry K. Rothman, 310/557-0062
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