Judge Rejects Able's Request For A Stay Of Execution Of SIRIT's Judgment Without The Posting Of Bond And
Additional Security
Business Editors
TORONTO--(BUSINESS WIRE)--June 21, 2000--At a hearing conducted in
Miami, Florida on June 19, 2000, the Honorable Alan S. Gold rejected
the request of Able Telecom Holding Corp. ("Able") that, in light of
its allegedly precarious financial condition, it be granted a stay of
execution of the $31.2 Million (U.S.) Judgment entered against it by
the Court on May 16, 2000, without the posting of a supersedeas bond
and other additional security. By Order entered on June 20, 2000,
Judge Gold granted Able a stay until June 27, 2000 to post a $4.8
Million (U.S) supersedeas bond -- the minimum amount that even Able
agrees it must pay SIRIT-- which serves as a guarantee to SIRIT. The
Court also ruled that "n addition to the bond, defendant Able shall
be required to satisfy reporting requirements to the court and to
[SIRIT] in order to provide additional security against possible
fraudulent transfers." Thus, the Court required Able to provide the
Court and SIRIT notice when it transfers $250,000 (U.S.) or more to
any division or subsidiary of Able or to any third party. Further, the
Court "reserve[d] the right to increase the bonding requirement if it
should become apparent that [Able] is engaging in a pattern to divest
itself of assets." The Court also emphasized: "If at any time, [Able]
should fail to meet the reporting requirements, should fail to post a
bond, or should fail to meet any increases in bonding requirements
ordered by the court, the court shall immediately lift the stay and
[SIRIT] may begin execution on the judgment."
As further protection of SIRIT's rights, the Court also directed
that SIRIT would be allowed to record (but not execute on) its
Judgment in any jurisdiction, thus creating a secured interest in
Able's assets, and that SIRIT shall have the right to observe in
person all Able board meetings.
At both the hearing conducted on June 19, 2000, and in its Order
of June 20, 2000, the Court took pain to emphasize that "[t]he parties
should not construe the decision today on the amount of the bond as a
decision on the merits of the pending post-trial motions for additur,
remittitur and judgment as a matter of law." Indeed, the Court
emphasized that if it sustains SIRIT's judgment it will order a
corresponding increase in Able's bonding requirement.
In order to make a determination on the pending motions, the Court
directed each of the parties to file proposed findings of fact and
conclusions of law on July 10, 2000, but indicated that he is not
likely to render a final decision until mid-August. SIRIT remains
confident that the Judgment it obtained on May 16, 2000, is fully
supportable under the law and will be sustained by the Court.
SIRIT focuses its business on wireless, e-commerce payment
solutions and identification systems in the transportation industry
using radio frequency technology. SIRIT designs, develops and
manufactures a range of radio frequency identification products
marketed as the IDentity Series including IDentity HandsFree, IDentity
Flex, and IDentity Title 21. SIRIT is the largest supplier of Title 21
compliant products to the United States market.
SIRIT has 34,082,843 million common shares outstanding on a fully
diluted basis.
For more information contact: Michael Briand, President and CEO,
SIRIT Corp., Markham, Ontario at (800) 498-8760, FAX (905) 940-4405 or
e-mail "mbriand@siritcorp.com"
No Stock Exchange, Securities Commission or Other Regulatory
Authority has Approved or Disapproved the Information Contained
Herein.
--30--JRB/at*
CONTACT: SIRIT Corp., Markham, Ontario
Michael Briand,(800) 498-8760, FAX (905) 940-4405
"mbriand@siritcorp.com"
KEYWORD: FLORIDA INTERNATIONAL CANADA
INDUSTRY KEYWORD: INTERNET E-COMMERCE LEGAL/LAW
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com |
