Like that one, it just broke into pieces:
Press Release
Osage Systems Group Announces Letter of Intent Regarding Sale of Substantial Operating Assets to Pomeroy Computer Resources
PHOENIX--(BUSINESS WIRE)--Jan. 11, 2001--Osage Systems Group Inc. (AMEX: OSE - news) Thursday announced that it has entered into a letter of intent (LOI) providing for the sale of operating assets and the business of Osage to Pomeroy Computer Resources Inc. (Nasdaq: PMRY - news).
The purchase price is undisclosed at this time.
The transaction is subject to a number of conditions, including negotiation of definitive agreements and customary approvals and consents. It is contemplated that the transaction will also be effected through the provisions of the U.S. Bankruptcy Code and will, accordingly, be subject to court approval.
If the sale is completed, Pomeroy anticipates that the systems integration and consulting business of Osage will operate as additional branch offices of the company.
``This proposed transaction should provide Pomeroy with the opportunity to acquire the business and capabilities associated with Osage's talented group of employees. It will also give the company a presence in geographies where we currently do not have facilities,'' commented Stephen E. Pomeroy, president of Pomeroy.
Over the past several months, management of Osage has sought capital to fund prior obligations and support its operations. Until recently, Osage has been able to generate operating cash flow but has not had sufficient capital support to overcome past obligations and support operations.
Because of its capital constraints, Osage has at times been unable to secure the necessary credit to purchase needed hardware and software for sale to its customers, resulting in lost sales opportunities. This has been a contributor to a major downturn in sales and operating cash flow in the fourth quarter.
In light of Osage's inability to show a profit, its capital providers have been reluctant to continue to invest additional capital or fulfill their capital commitments. Currently, Osage does not have the cash availability to meet critical payments to maintain its operations independently.
``The proposed sale to Pomeroy should permit the business of Osage to continue and develop as part of Pomeroy while providing the greatest value to Osage stakeholders,'' commented Phil Carter, chief executive officer of Osage.
This transaction will take place under the provisions of bankruptcy laws. Osage has engaged Hodgson Russ LLP as bankruptcy counsel to advise on all creditor issues. . |
