Good News!!! Anybody here? Coming out of Chapter 11. It appears that present shareholders get to keep their stock and new stock is being issued to pay off the bondholders.
biz.yahoo.com
AUTO will have about 18 million shares outstanding after
reorganization. Not bad at all. Have $26 million tax loss.
At 34% tax rate this would be worth about 50 cents a share
when shielding earnings of another company. Looks like a
good buy as current price is only 11 cents IMO.
Thursday February 3, 9:33 am Eastern Time
Company Press Release
AutoInfo, Inc. Announces the Filing of a Prepackaged
Chapter 11 Reorganization Plan
STAMFORD, Conn.--(BUSINESS WIRE)--Feb. 3, 2000--AutoInfo, Inc. (OTC BB:AUTO) today announced it has filed a
disclosure statement and reorganization plan (``the Plan') pursuant to Chapter 11 of title 11 of the United States Bankruptcy
Code. The Plan provides for the issuance of one share of Common Stock and a cash payment of $ 0.03 for each dollar of
approximately $9.5 million of unsecured debt.
The Company further announced that the requisite number and dollar amount of the unsecured creditor group has voted to
support of the Plan.
William Wunderlich, President and Chief Financial Officer of AutoInfo, stated, ``we appreciate the cooperation received from
the unsecured creditor group in supporting the Board of Directors and management in this restructuring effort. Once the Plan is
confirmed by the Bankruptcy Court, AutoInfo will have no remaining debt. This will enable us to seriously pursue opportunities
to consummate a transaction with an operating business and maximize the benefit of our tax loss carryforward of approximately
$26 million. We view this development as a significant step in our continuing effort to restore shareholder value.'
This release contains ``forward-looking statements' based on current expectations but involving known and unknown risks and
uncertainties. Actual results or achievements may be materially different from those expected or implied. The Company's plans
and objectives are based on assumptions involving judgments with respect to future economic, competitive and market
conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are
beyond the control of the Company, including the ultimate confirmation of the Bankruptcy Plan Therefore, there can be no
assurance that forward-looking statements will prove to be accurate
Contact:
AutoInfo, Inc.
William I. Wunderlich, 203/595-0005 |
