Global TeleMedia International Announces Debt Reduction Of Twenty Million Dollars
GTMI Management Confirmed That the Legacy of all Major Debts and Litigation From Previous Management Have Been Resolved
NEWPORT BEACH, Calif., Nov. 2 /PRNewswire/ -- Global TeleMedia International, Inc. (OTC Bulletin Board: GTMI) www.gtmi.com announced that settlements had been reached in litigations and debts totaling twenty million dollars clearing the way for the Company's listing on the American Stock Exchange.
President, Jonathon Bentley-Stevens said, "The debt reduction was critical to the execution of certain long term pending contracts and financing. GTMI's new Management since taking over 16 months ago has spent over $1 million in legal fees, resolving law suits dating back to 1997. Amex listing officials had informed the company that significant litigation items could prevent the company from listing on any major exchange. Additionally the company has two research reports currently being written. The reduction of $20 million in debts will dramatically improve the company's financial statements, and this coupled with significant new business development should lead to positive reports by the two independent chartered financial analysts, thus making the company stock more attractive to new investors."
CFO David Tang said, "With the clearing of the final significant litigations, GTMI can look forward to tremendously improved financial statements and a clear horizon to focus on new product development, and higher than expected earnings. New products, international VoIP distribution, international Smart-e-Card, calling platforms, and national Smart-e-Cash machine deployment, mean that GTMI must obtain credit from its suppliers and partners.
"The current market slump had shareholders clamoring for management to act. However, the delicate nature of settling litigations and such significant debt first had to be patiently negotiated in order to execute agreements which involve the need for GTMI to obtain credit from its new and pending partners. GTMI now has a clear chance to be a leader in its field and to deliver solid earnings per share for its shareholders."
The 1997 $3 million K&S litigation was negotiated down by 60% and settled by a cash payment of $440,000 by Directors and the issuance of some registered and some 144 restricted stock, with an additional $400,000 payment due one year from date of execution.
Additionally, the WorldCom litigation has been amicably resolved and is in the process of being documented. This clears the way for a proposed working relationship with WorldCom and GTMI.
PR CONTACT: Tim Garlin, PrimeVest.net, 1-866-774-6468.
Global TeleMedia International, Inc., located in Newport Beach, California, and Atlanta Georgia, through its BentleyTel.com subsidiary, (www.bentleytel.com) is a leading developer of interactive software for complex E-commerce solutions, multi-media and high speed Internet and wireless communication systems, including international & long distance Voice over IP, LAN VPN (Virtual Private Network), ISP, Virtual ISP, and PC-PC, PC-Phone transmission of data and voice. It also owns manufacturing and telecom, ISP, and software development facilities in Australia, Malaysia and the Philippines.
This press release contains forward-looking statements. All such statements involve risks and uncertainties, including, without limitation, the risks detailed in Global TeleMedia's filings and reports with the Securities and Exchange Commission. Such statements are only predictions and actual events or results may differ materially.
SOURCE Global TeleMedia International, Inc.
/CONTACT: Tim Garlin of PrimeVest.net, 866-774-6468, for Global TeleMedia International, Inc./
/Web site: bentleytel.com
/Web site: gtmi.com |
