Series A Bonds Settlement - The Company did not make the required
interest payments of $125,000 due in October 1998 and $125,000 due in April 1999
on the Series A Bonds. As a result, the bondholder had the right to declare the
Series A Bonds in default and accelerate the entire outstanding balance of $12.0
million, plus accrued interest thereon. On March 26, 1999, CT entered into a
restructuring agreement, as amended, with the bondholder, which is contingent
upon numerous conditions. Under the agreement, the Series A Bonds will be
reduced to an aggregate principal amount of $5,750,000 and payable in four equal
annual installments of $750,000, with $2,750,000 payable after 5 years. The
agreement requires interest payments at 2% per annum during the first four
years, and thereafter at a variable rate not exceeding the prime rate on
commercial loans in Japan plus 0.5%. The agreement also requires that any
amounts paid by Eiichi Isomura pursuant to his personal guarantees on the debt |
