WasteMasters, Inc. to Take Possession of Rye Creek Landfill
EL RENO, Okla., Feb. 14 /PRNewswire/ -- WasteMasters, Inc.
(OTC Bulletin Board: WAST) announced today that the bankruptcy court
overseeing Continental Investment Corporation's (OTC Bulletin Board: CICG)
bankruptcy approved Continental's plan of reorganization on February 10, 2000.
Previously it was announced that WasteMasters, Inc. and Continental Investment
Corporation had received approval from the bankruptcy court to rescind the
original stock purchase agreement between the parties. Pursuant to the
rescission, WasteMasters would pay Continental and Continental would return
certain assets and shares. The initial funds WasteMasters, Inc. provided to
Continental Investment Corporation was paramount to the approval of their plan
of reorganization last Thursday.
The Rye Creek landfill generates approximately $600,000 in revenue and
nets 7% in after tax net income. Sales efforts at the landfill have been kept
at a minimum for several years because Continental did not believe it
possessed the expertise to operate landfills effectively. WasteMasters,
Inc.'s personnel will implement a more aggressive marketing plan designed to
increase revenue and net income results.
Douglas Holsted, President of the Company, stated: "I congratulate
Continental on getting out of bankruptcy. The battles they have had to fight
in the past year and a half were difficult and their board should be commended
for sticking it out and causing it to happen. As far as we are concerned, Rye
Creek is a good asset. I'm looking forward to developing that region of the
country."
The plan also established a new workable relationship with WasteMasters'
provider of bonds -- Frontier Insurance. Frontier had initially opposed
Continental's plan because of several contractual defaults between the
companies. Frontier agreed to the plan after settling many of these issues
with WasteMasters.
"Rye Creek is a vital landfill for WasteMasters in that the operation
generates revenues and net income. This is not a development or contingent on
permitting -- it is a currently operating landfill," said Leon Blaser, the
Chairman of WasteMasters. "This is a small but significant step for re-
building WasteMasters' operations."
For further information contact Douglas Holsted, President of
WasteMasters, Inc. at (405) 262-0800.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: The statements contained in this news release which are not
historical facts may be "forward-looking statements" that involve risks and
uncertainties which could cause actual results to differ materially from those
currently anticipated. For example, statements that describe WasteMasters'
hopes, plans, objectives, goals, intentions, or expectations are forward-
looking statements. The forward-looking statements made herein are only made
as of the date of this news release. Numerous factors, many of which are
beyond WasteMasters' control, will affect actual results. WasteMasters
undertakes no obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances. This news release should be read
in conjunction with WasteMasters' annual report on Form 10-KSB for the fiscal
year ended December 31, 1998 and other filings with the U.S. Securities and
Exchange Commission by WasteMasters.
SOURCE WasteMasters, Inc.
-0- 02/14/2000
/CONTACT: Douglas Holsted, President of WasteMasters, Inc., 405-262-0800/
(WAST CICG)
CO: WasteMasters, Inc.; Continental Investment Corporation |
