Please read: All AETTQ common stock is about to be canceled:
Court Approves Alliance Entertainment Corp. Disclosure Statement;
Solicitation to Begin
Confirmation Hearing Set for July 30, 1998
NEW YORK, June 26 /PRNewswire/ -- Alliance Entertainment Corp. (OTC Bulletin Board: AETTQ - news) reported today that it has received approval from the Bankruptcy Court of its Disclosure Statement for its Plan of Reorganization. The Company also reported the Court approved the sale of its U.K. subsidiary, Castle Communications to London-based Rutland Trust PLC.
The approval of the Disclosure Statement allows Alliance to commence the solicitation of votes for approval of its Plan of Reorganization. Plan materials and ballots are expected to be mailed on June 30, 1998. The deadline for returning the ballots is July 24, 1998, in accordance with instructions on the ballots. A hearing to confirm the Plan is scheduled for July 30, 1998.
''We are pleased with the Court's approval and look forward to the next step in our reorganization process,'' said Eric Weisman, president and chief executive officer. ''With the support of the banks and the major creditors, we anticipate Alliance will emerge from Chapter 11 in early August, as a stronger, more profitable company.''
Under the terms of the Plan, the newly reorganized Alliance Entertainment will become majority owned by a syndicate of banks
led by The Chase Manhattan Bank, as agent. The Company's existing common stock will be canceled and shareholders in the old Alliance Entertainment will receive no distribution, either in cash or common stock in the new Company.
Alliance Entertainment Corp. is the largest wholesaler of prerecorded music and related products. Alliance Entertainment Corp. and certain of its subsidiaries voluntarily filed to reorganize under Chapter 11 on July 14, 1997. The Company currently employs approximately 800 people in the United States and Canada and maintains headquarters in Coral Springs, Fla.
Forward-looking statements herein are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company ''believes,'' ''expects,'' ''anticipates,'' or words of similar import. Similarly, statements that describe the Company's future plans, objectives, estimates or goals are forward-looking statements. There are certain important factors that could cause results to differ materially from those anticipated by forward-looking statements made herein. Investors are cautioned that all forward-looking statements involve risks and uncertainty.
SOURCE: Alliance Entertainment Corp. |
