In all fairness >>here's their response. (Ya'll need to chill)
Friday April 18 11:07 AM EDT
GIFS' CRIC UNIT ASSETS AT $99.25 MILLION:
FINAL REPORT TO INCLUDE DETAILS FOR
IMPROVED PERFECTION OF
COLLATERALIZATION
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--April 18, 1997--Genesis International
Financial Services (GIFS-OTC-BB) announced today that the preliminary due diligence summary
prepared by an international office of BDO in conjunction with the sale of its CRIC unit has
reported the property valuation underlying the instruments representing the critical assets of CRIC,
in accordance with the appraisal made by Banco Union, S.A., an authorized financial institution,
factually agree in general terms with certificate stated amount of $100 million less liabilities
equivalent to approximately $714,000 creating an approximate net asset collateral value in excess
of $99.25 million.
The final due diligence review report expected to be completed later next week will include several
alternative methods whereby the parties to the sale (buyer and seller) can improve the perfection of
their collateral interests in those underlying assets to be incorporated into the closing documents of
the $117 million sale of its CRIC unit. The company has provided this information to the
international buying group led by Suisse Private Banking, Ltd., and InterFinance Banking Group.
Dr. Nelson Aquino, lead counsel for the international buying group, has re-confirmed their
complete agreement and total commitment to the April 28, 1997 closing date previously reported.
In addition to the foregoing, since the Company has issued its Brokerage Advisory seeking to stop
the illegal and unauthorized dilution of its Shareholders' equity, efforts by those who have a vested
interest in driving the price of the Company's stock lower have intensified.
The Company has become aware, for instance, that as a final resort, threats have been made to
attempt to undermine Shareholder value through unethical attacks on the Company's 34 year-old
CEO, Mohamed Khairy Mohamed Zayed, II and his character. Friends, associates and business
partners of the CEO have long been aware of a youthful indiscretion over a decade ago that
resulted in Mr. Zayed having fully paid a debt to society through a period of incarceration,
completed over 7 years ago. This has been made known to the CRIC international buying group
and interested parties involved in the sale of the CRIC unit.
While there were extenuating circumstances whereby Mr. Zayed may have been victimized as a
scapegoat by business associates much older than he, the courts did not agree and Mr. Zayed
nevertheless has always accepted full responsibility for his actions and the consequences of those
actions.
Mr. Zayed has since received numerous honors, including a Distinguished Citizen Award, a listing
in the Who's Who in American Business Executives and Professionals. His experiences also
served as an inspiration for his efforts to provide financial support to other Minorities seeking
entree into the mainstream business world, and forms the backbone for his Company's subsequent
bonding activities for Minority businessmen and women.
Mr. Zayed regrets that because he was thrust into public arena via his acquisitions of an existing
public company, his character and integrity, and his family's name could subsequently become a
pawn in unethical attempts to undermine investor confidence, and reassures shareholders that these
matters have nothing whatsoever to do with the Company's businesses, revenues, earnings or its
impending transactions with any parties; and that ultimately, the Company will prevail as the full
value of the Company becomes evident over the next few days and weeks through the impending
sale of its CRIC unit as well as ongoing revenues and earnings reports.
He also stated that these efforts has only hardened the Company's resolve to protect the
Shareholders from dilution of their equity, resulting in the actions taken Thursday to assume direct
control of all transfer operations.
(GIFS-OTC-BB) is a diversified holding company maintaining investments in the financial services
industry, medical products industry, agricultural industry, real estate, natural resources and gold
mining industries with investments in other hard assets, securities, and projects. For more
information about GIFS contact our Investor Relations Department at 735 Broad Street, Suite
1001--James Building, Chattanooga, TN 37402, (423) 266-7544 or via Email at:
investor.relations.genesis@juno.com You may also obtain more information about GIFS by visiting
our website at: gifs-inc.com
CONTACT: Genesis International Financial Services, Chattanooga
Michael W. Rehtorik, 423/266-7649 |
