HMARQ - Recent News
hvide.com
“LETTER TO SHAREHOLDERS - 2
As indicated in my letter of September 9 when we announced our Chapter 11 filing, we intend to keep our shareholders informed of significant developments as they occur. In that spirit, I wish to say at the outset that we have received phone calls and e-mails since the filing from many of our approximately 9,000 shareholders, and have tried to respond to each of them. This letter will supplement those efforts and address the most frequently asked questions and concerns.
1. "What has been the reaction of customers and suppliers to the filing?" – I am pleased to report that, on balance, their reaction has been good and business continues as usual.
2. "When will the stock trade again?" – Nasdaq suspended trading in HMAR on September 9 and requested additional information from the Company. We have responded to their request and are awaiting their decision as to whether and when trading will resume. In the meantime, the letter "Q" has been added to our stock symbol, which is now HMARQ, indicating the Company is in Chapter 11.
3. "When will we know what the shareholders get?" – We are currently negotiating a plan of reorganization with representatives of our major creditors. When we have reached agreement, we will file the plan with the Bankruptcy Court and announce its major provisions. However, as previously reported, shareholders will likely experience "substantial dilution."
4. "What is meant by ‘substantial dilution'?" – "Substantial dilution" means you will own far less of the "new" Hvide than you do of the "old" Hvide. Put another way, it means the current value of your holdings will be substantially reduced.
5. "What is a warrant?" – A warrant is the right to purchase a share of stock at a predetermined price. Warrants have varying expiration periods and can be exercised at any time prior to expiration. They are similar to stock options.
6. "Do I get to vote on the plan of reorganization?" – Yes. You will receive a copy of the Disclosure Statement, which includes the plan, in the mail together with a ballot for your vote yea or nay.
As more news becomes available, we will pass it along in the form of a press release and/or via the web page. In the meantime, you may make your additional concerns known to us via e-mail (jack.o'connell@hvide.com) or by calling our Investor Relations Department at 954/524-4200, x224.
Jean Fitzgerald
Chairman, President and CEO
September 20, 1999”
Note: As further news becomes available, I will post with little or no comment.
SargeK |
