Thursday July 22, 2:15 pm Eastern Time
Company Press Release
SOURCE: AmeriResource Technologies, Inc.
AmeriResource Technologies, Inc. Announces Out of Court Settlement With Industrial State Bank.
OVERLAND PARK, Kan., July 22 /PRNewswire/ -- Delmar Janovec, CEO of AmeriResource Technologies, Inc. (OTC Bulletin Board: ARET - news) announced today that the company has reached an out-of-court settlement with Industrial State Bank. The settlement reached involved an existing line of credit in the approximate amount of $1,200,000 plus interest. The line of credit had matured during September 1998. The settlement also involved a line of credit that Delmar Janovec had received from the bank relating to the obligations of Tomahawk Construction Co. to the bank. Tomahawk Construction Company was forced to file bankruptcy in September 1994, later emerging from bankruptcy in August 1995. The total indebtedness asserted by the bank to be due and owing by ARET and Mr. Janovec was in excess of $4 million.
The settlement reached, with Industrial State Bank, was for cash payments and the conversion of preferred shares of ARET owned by Mr. Janovec and pledged to Industrial State Bank. The 2,750,000 shares of preferred stock are to be converted into shares of common stock of ARET, which shares of common stock will be transferred to Industrial State Bank. The conversion rate was one for one. The first payment was due and paid on July 16, 1999 with the second payment due on August 30, 1999. The settlement of this lawsuit and obligation to Industrial State Bank will reduce the current liabilities of ARET by approximately $1.2 million.
Mr. Janovec stated, ''The settlement reached is fair and equitable and allows ARET to eliminate a major liability to the corporation. By reaching this agreement, the parent company and their subsidiaries can focus more time and energy toward generating revenues. First Americans Mortgage Corporation's and their lending partner's recent announcements concerning their Native American mortgage program has spotlighted the company both regionally and nationally. The company recognizes that in order to expand our partnerships with solid and reputable companies, ARET must continue to reach satisfactory conclusions on outstanding legal issues. ARET management pledges to continue to work hard in order to reach profitability while pursuing the goal of creating shareholder value.''
The release may contain forward-looking statements that involve risk and uncertainties, including without limitations, continued acceptance of the company's products and services, increased levels of competition, new products and technological changes, The Company's dependency on financing third party supplies and intellectual property rights, and other risks detailed from time-to-time in the company's federal filings, annual reports, offering memorandums or prospectus.
SOURCE: AmeriResource Technologies, Inc. |
