Monday March 27, 11:55 am Eastern Time
Company Press Release
Pacific International Enterprises Inc. Status of the Chapter 11 Proceedings
PCIE Wins Summary Judgment
LONG BEACH, Calif.--(BUSINESS WIRE)--March 27, 2000--Pacific International Enterprises, Inc. (Symbol:PCIEQ) (Symbol:PCIEE) Summary Judgment motion was granted by the Los Angeles Bankruptcy Court Wednesday, March 22, 2000.
According to Anthony Broughton, PCIE's Chief Financial Officer: ``On September 7, 1999, as a result of a dispute with KCDK, a Washington LLC, PCIE's landlord, PCIE was forced to file the Chapter 11 action to preserve its rights to use the land and building for its ongoing board manufacturing operation. Since the execution of the various agreements acquiring the assets and businesses in January 1999 PCIE Management's ability to operate effectively has been totally restricted by third party interests and was never given the chance to participate in and optimize its 1999 orders. The various parties, at one stage or another, blocked financing efforts by refusing to cooperate, have not agreed on the business plan, have reneged on promises and generally interfered in the attempts by management to operate this business.'
On March 22, 2000, the United States Bankruptcy Court ordered, adjudged and decreed as follows:
1. The security interests of the Murrays in the Debtor's assets
as adopted in both States of Washington and California, are
hereby determined and declared to be senior in priority to
the competing security interests claimed by France Sports
Mfg. and KCDK.
2. The Murrays are hereby entitled to exercise their default
remedies, if they elect to do so, in accordance with prior
orders of the Court and applicable bankruptcy law.
On the same day the Court also approved the Zaremba/PCIE Agreement.
``These critical and positive judgements in our favor open the door to prepare and submit to the Court our Chapter 11 reorganization plan. Through our agreement with the Zaremba Group LLC, which buys out the Murrays' position as senior lien holder, $7 million in support financing for our operations is already in place,' states Binks Graval, President and CEO of PCIE. ``We look forward to getting back to the business of making snow, wake and skateboards, this time with the proper working capital and without negative third party interference.'
Statements in this release are made pursuant to the ``safe harbor' provisions of the Private Securities Litigation reform Act of 1995. Investors are cautioned that such forward looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the company's products, increased levels of competition for the Company, and dependence on third party suppliers.
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Contact:
Pacific International Enterprises Inc.
Anthony Broughton, CFO, 562/424-1295
Fax: 562/424-3605
e.mail: tempy12@aol.com |
