CHATE - CHATSWORTH, Calif., Sep 21, 1999 (BUSINESS WIRE) -- ChatCom Inc. (OTC BB:CHAT) President and CEO James Roche Monday stated that, "After being brought into court twice in two weeks time and then a threat from ALCO's attorney to attach all assets of the company, ChatCom filed for protection under Chapter 11 of the U.S. Bankruptcy Code on Sept. 8, 1999.
"ALCO Corp., who factors ChatCom's receivables, made two attempts in court at putting a receiver into the offices of ChatCom based on inaccurate and false information."
Roche further stated that, "On both appearances -- on Aug. 18 and again on Sept. 3 -- not only did ChatCom prevail but two different judges were furious with the unproven allegations of ALCO and its attorneys for filing such a specious law suit." Both judge's rulings were the same: "Motion Denied."
Roche has been investing money, totally unsecured, in and on behalf of ChatCom to hold things together, even after he was promised by Bob Weisberg, the president of ALCO, that, "Any moneys invested by Roche would join ALCO in their UCC-1, first priority claim." This never happened.
Roche was again surprised when he received a fax at his home after 5:30 p.m. Friday, Sept. 3, 1999, stating that ALCO would attempt to attach all of the assets of ChatCom in four days (this was at the beginning of a three-day Labor Day weekend). As a result, ChatCom filed for protection under Chapter 11 of the Bankruptcy Code on Sept. 8, 1999.
The company now has the protection of the court and is preparing a plan of reorganization to be presented within the next 30 to 60 days. "ChatCom plans to move forward now that these frivolous and specious lawsuits are behind us," Roche said.
According to Roche, the company also expects a few sizable orders over the next 90 days, which will help re-establish its position in the market place.
Statements contained in this news release that are not historical facts are forward-looking statements under the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Although the company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurances that its expectations will be attained. Forward-looking statements involve known and unknown risks that could cause the company's actual results to differ materially from expected results, including the need to raise additional capital and those risks described in the company's various filings with The Securities and Exchange Commission, including Form 8K, filed April 1999. |
