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Applies to -- RPCX
ReSourcePhoenix.com Announces Sale of Assets and Winding Down of Operations
ReSourcePhoenix.com Announces Sale of Assets and Winding Down of
Operations
SAN RAFAEL, Calif., Nov 29, 2000 (BUSINESS WIRE) -- ReSourcePhoenix.com
(Nasdaq:RPCX), today announced that it has agreed to sell substantially all of
its assets to Phoenix American Incorporated (PAI), an RPC affiliate, as part of
an orderly winding down of the company's operations. In this regard, PAI will
assume the company's obligations to its secured creditors. No recovery to
general unsecured creditors or shareholders is anticipated at this time. In
addition, the company announced the layoff of approximately 80 of its 173
employees. The remaining employees will be transitioned to the purchaser of the
assets.
Gus Constantin, chairman, president and chief executive officer stated, "I want
to assure our customers that we will be working with them to try to facilitate a
smooth transition."
The announcement came after a lengthy and exhaustive effort to both raise
capital, dating back to early spring, or more recently, to sell the company
outright to a non affiliated entity. The company contacted numerous financial
and strategic prospects. The company worked to maximize business efficiencies
and eliminate as many operating expenses as was prudent to conserve cash and to
provide more time to examine all options. In the end, however, the result of
these efforts was insufficient as no party was prepared to provide capital or
acquire the company.
ROTF! ROTF!
CONTACT: ReSourcePhoenix.com
Maureen Roland, 415/485-4600
URL: businesswire.com
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