Plasticon International, Inc. Postpones Share Exchange Program
LEXINGTON, KY, Jun 08, 2007 (MARKET WIRE via COMTEX) -- Plasticon International, Inc. (PINKSHEETS: PLNIQ) announced today that the Company has postponed its share exchange program until further notice. Plasticon has postponed the exchange in order to allow the Company to coordinate its capital stock reorganization with the restructuring of its debt.
Preparations were made earlier this year for Plasticon to reorganize its equity structure by offering to its shareholders of record the opportunity to exchange Common Stock for a newly created class of Convertible Preferred Stock. On May 16, 2007 the Company filed a Chapter 11 corporate reorganization proceeding in order to preserve the value of its subsidiary, Pro Mold, Inc., whose assets were in jeopardy. Chapter 11 allows a company to reorganize while it continues to operate and grow its business, as opposed to liquidation.
"The Board of Directors of the Company has decided to take advantage of the opportunity presented by the Chapter 11 proceeding to restructure its capital stock at the same time it restructures its debt through a plan of reorganization. We expect to proceed with the exchange program at a later date. Shareholders should visit the Company's Web site for updates on this and other news about the Company," stated Jim Turek, CEO and President of Plasticon International, Inc.
Plasticon International, Inc. recently announced that the Company's wholly owned subsidiary, SEMCO Manufacturing, is in the final stages of installing flooring in a Lexington, KY, Cadillac and Volvo dealership. The project is valued at an estimated $30,000 in revenue and is expected to be completed in approximately two weeks. |
