NAHC, Inc. Announces Third Quarter Results, Updates Liquidation Analysis and Extends Liquidation Date
KING OF PRUSSIA, Pa., May 15, 2001 (BUSINESS WIRE) -- NAHC, Inc. (OTCBB: NAHC)announced today the filing of its Form 10-Q for the three months ended March 31, 2001.
As part of the filing, the Company has revised its range of liquidation estimates. The revised range of estimated realizable value of funds available for distribution to stockholders (liquidation estimates) is negative $19.6 million or ($.31) per common share to $0.22 million or $.0022 per common share.
In addition, the Company announced that the Board of Directors has extended the Liquidation Date by one year to June 30, 2002. The Board of Directors has decided to extend the Liquidation Date because the Company (as described in the 10-Q) is a party to a number of significant and complicated litigation matters that have not yet been resolved.
Final decisions regarding the liquidation of the Company will be made when there is greater clarity regarding the resolution of these matters.
Additional information concerning the estimated liquidation values and Liquidation Date are discussed in the Company's Form 10-Q for the three months ended March 31, 2001, filed today with the Securities and Exchange Commission.
Cautionary Statement
Except for historical information, matters discussed are forward-looking statements that are based on management's estimates, assumptions and projections. Investors should note that an investment in the Company should be considered extremely speculative and risky.
Investors are directed to read in their entirety the Forms 10-Q for this quarter and the quarters ended December 31, 2000 and September 30, 2000 as well as the Form 10-K for the fiscal year ended June 30, 2000. The liquidation estimates are based on estimates of the Company's cash inflows and outflows from litigation.
The Company is involved in significant litigation - claims against the Company as well as claims the Company is pursuing. The Company has made assumptions about the outcome of this litigation. Investors are directed to read the portions of the Company's SEC filings which discuss the inherently risky nature of litigation.
If the Company's assumptions are not correct, the liquidation estimates may be materially incorrect. In particular, there is a significant risk of bankruptcy if certain claims against the Company do not settle but are actually litigated or if there is an adverse finding against the Company.
In several cases, if there is an adverse ruling the Company will file for bankruptcy protection and there will be no assets for shareholders.
Other factors that could cause results to differ materially from those expected by management include, without limitation, assumptions relating to whether cases will settle and for what amounts, assumptions relating to the time required for certain litigation, the costs of such litigation, potential claims related to businesses sold, the ability of the company to realize its remaining assets in cash, the cost to wind-up the company's affairs in preparation for a potential liquidation, and the company's ability to retain management and professional employees during its wind-down period.
Contact:
NAHC, Inc.
Lisa V. DeScenza, 978/974-9474 x226
or
David R. Burt, 610/992-7441 |
